SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow

SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow
SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow
SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow
SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow

SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow

SJVN Share Price Falls 10% as Offer for Sale Opens; Retail Investors Can Bid Tomorrow

Decline in SJVN Share Price

SJVN’s share price experienced a decline of 10% during early trading on Thursday on the BSE as the offer for sale (OFS) for non-retail investors opened. Retail investors will have the opportunity to participate in the OFS on the following day, Friday.

Opening Performance

The stock opened at ₹74.69, contrasting with its previous closing price of ₹81.75, and dropped by 10% to reach ₹73.53 on the BSE.

Impressive Year-to-Date Performance

SJVN’s share price has exhibited remarkable performance, surging by 173% from its 52-week low of ₹29.90, which it had reached on September 30, 2022, on the BSE. Year-to-date, as of September 20, the stock has recorded substantial gains of 139%, significantly outpacing the Sensex, which has risen by approximately 10%.

Indian Rupee Opens Slightly Lower Against US Dollar Amid Rising US Treasury Yields

Government Divestment and Fund Raising

The government is undertaking divestment in SJVN, intending to sell a 4.92% stake, which includes a Green Shoe option of 2.46%, at a floor price of ₹69 per share through a two-day OFS. At this floor price, the sale of the stake is expected to yield over ₹650 crore. Additionally, SJVN’s board of directors is scheduled to convene on Saturday, September 23, to consider and approve a plan for raising funds through the securitization of assets.

Financial Assistance Partnership

In a separate exchange filing on September 20, SJVN disclosed that it had signed a Memorandum of Understanding (MOU) with PFC (Power Finance Corporation) for financial assistance for various diversified portfolios of projects, primarily renewable energy and thermal generation projects. These projects are expected to have a total project cost of approximately ₹1,18,826 crore. PFC’s financial support, in the form of a term loan, is tentatively proposed to range from ₹80,000 crore to ₹90,000 crore, with potential increases to accommodate the specific requirements of renewable energy projects.

Financial Performance

SJVN reported a decline of over 55% in its consolidated net profit, amounting to ₹271.75 crore, in the June quarter of FY24. The company’s total income also decreased to ₹744.39 crore in the first quarter of the current fiscal year from ₹1,072.23 crore in the corresponding period of the previous year.

Investors are advised to seek guidance from certified experts before making investment decisions.

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