Shares of SJVN fall 10% as OFS begins; a board meeting will be held soon to discuss divestiture

As the offer for sale (OFS) for non-retail investors commenced on Thursday, the SJVN share price spiked by 10% in early trades on the BSE. On Friday, the OFS will accept bids from retail investors.

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The stock cracked 10% to reach the level of 73.53 on the BSE after opening at 74.69 against the previous close of 81.75.

The stock opened at 74.69 against the previous close of 81.75 and fell 10% to reach the level of 73.53 on the BSE.

According to Mint, the government will sell 4.92 percent of the shares, including a 2.46 percent Green Shoe option. Through a two-day offer for sale, the government would sell a 4.92 percent stake in SJVN at a floor price of 69 per share.

The sale of a 4.92 percent stake, or more than 9.66 crore shares, will bring in more than 650 crore at the floor price of 69 a share.

In addition, the SJVN board of directors will meet on Saturday, September 23, to discuss and approve raising money through the securitization of assets, according to an exchange filing.

On September 20, SJVN disclosed in a separate exchange filing that it had signed a Memorandum of Understanding (MOU) with PFC for financial assistance to various diversified portfolios of projects, primarily thermal generation and renewable energy projects, to be established at a total project cost of about 1,18,826 crore.

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According to the corporation, “the term loan financial assistance is tentatively proposed at 70% of the project cost, with the possibility of an increase for renewable energy projects based on project requirements.”

PFC’s financial support under the MoU, in the form of a term loan, is provisionally proposed to range from 80,000 crore to 90,000 crore, signifying a significant commitment to the implementation of these crucial projects. That remark highlighted the flexibility of this cooperation to meet changing project needs by indicating that these funds may be extended further to meet the unique requirements of the renewable energy projects.

SJVN reported a decline in its combined net profit of more than 55% to 271.75 crore in the June quarter of FY24. In the first quarter of the current fiscal, the company’s total revenue fell from 1,072.23 crore in the corresponding time last year to 744.49 crore.

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