NEW DELHI: State-owned SJVN’s offer for sale (OFS) received an overwhelming response as
it was oversubscribed on the first day. The OFS, which was open for non-retail investors on Thursday, witnessed a demand that was 240% higher than the shares available for sale. The issue received demand for 20 crore shares, in comparison to the 9.66 crore shares that were on offer.
SJVN (Satluj Jal Vidyut Nigam), a mini Ratna company has launched an Offer for Sale (OFS) to divest up to 4.9% of its outstanding shares to raise Rs 1,333 crore. The floor price for this offering has been set at Rs 69 per share, which is 16% less compared to its closing price as of September 20, 2023.
“Offer for sale in SJVN opens on Thursday for non-retail investors. Retail investors can bid on Friday. Government of India will divest 4.92% equity including a Green Shoe option of 2.46%,” Tuhin Kanta Pandey, Department of Investment and Public Asset Management secretary, posted on X.
The offer for sale commenced on Thursday (September 21, 2023), and on the second day, which is September 22, 2023, retail investors will have the opportunity to participate in the bidding. Subsequent to this announcement, the company’s share price experienced a decline of approximately 12.91% on Thursday, reaching Rs 71.20.
The closing price on the previous day (20 September 2023) stood at Rs 81.75. Established as a joint venture between the Government of India and the Government of Himachal Pradesh, SJVN is one of the leading power producers in the country. The state-run company currently boasts a total capacity of 2,091 MW, with a 91% dedicated to hydroelectric power and the remaining portion allocated to renewable energy sources.