BackSJVN share price cracks 10% as OFS opens; board meet ahead to consider divestment
SJVN share price drops 10 per cent as non-retail investors sell, retail investors can bid tomorrow. Government to divest 4.92 per cent stake. The company's board to meet on Saturday.
PremiumSJVN share price cracked 10 per cent in early deals on Thursday on BSE as the offer for sale (OFS) for non-retail investors opened. Retail investors can bid in the OFS tomorrow on Friday.
The stock opened at ₹74.69 against the previous close of ₹81.75 and cracked 10 per cent to hit the level of ₹73.53 on BSE.
SJVN share price has surged 173 per cent from its 52-week lows of ₹29.90 which it hit on September 30, 2022, on BSE. Year-to-date (as of September 20), the stock has gained a whopping 139 per cent while the Sensex has risen about 10 per cent.
As Mint reported, the government will divest 4.92 per cent equity including a Green Shoe option of 2.46 per cent. The government will sell a 4.92 per cent stake in SJVN at a floor price of ₹69 per share through a two-day offer for sale.
At the floor price of ₹69 a share, the sale of a 4.92 per cent stake -- or over 9.66 crore shares -- will fetch over ₹650 crore.
Besides, as per an exchange filing, the SJVN's board of directors is to meet on Saturday, September 23, to consider and approve raising funds through the securitization of assets.
Meanwhile, in a separate exchange filing on September 20, SJVN said it had signed a Memorandum of Understanding (MOU) with PFC for financial assistance to various diversified portfolios of projects including majorly renewable energy projects and thermal generation projects to be set up at a total project cost of about ₹1,18,826 crore.
"The term loan financial assistance is tentatively proposed at 70 per cent of the project cost, which may be increased for renewable energy projects as per project requirements," said the company.
Under the MoU, PFC's financial support in the form of a term loan is tentatively proposed to range from ₹80,000 crore to ₹90,000 crore, demonstrating a substantial commitment to the realization of these vital projects. These funds may be further increased to accommodate the specific requirements of the renewable energy projects, emphasizing the adaptability of this partnership to evolving project needs, said that statement.
Read more: PFC, SJVN tie up for ₹1.18 trillion investment in RE, thermal projects
SJVN reported an over 55 per cent dip in its consolidated net profit to ₹271.75 crore in the June quarter of FY24. Total income of the company declined to ₹744.39 crore in the first quarter of the current fiscal from ₹1,072.23 crore in the year-ago period.
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