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In a recent development, shares of SJVN, a state-run company, witnessed a sharp decline of 10% in Thursday’s trading session. This significant drop comes as its promoter, the President of India represented by the Ministry of Power, Government of India, initiated an offer for sale (OFS) of up to 9,66,72,962 equity shares over a two-day period. The floor price for this offer was set at Rs 69, representing a substantial 15.59% discount compared to SJVN’s closing price of Rs 81.75 per share on the preceding Wednesday. This OFS aims to help the government achieve the minimum public shareholding norms, as it currently holds an 86.77% stake in the company.
SJVN’s Share Offer Details:
- The base offer comprises 2.46% of the total issued and paid-up capital of SJVN.
- In case of oversubscription, Company intends to purchase an additional 9,66,72,961 shares, potentially increasing the offer’s representation to 4.92% of the total issued and paid-up equity share capital.
- Retail investors have a reserved allocation of 10% of the offer, contingent on valid bids.
- Mutual funds and insurance companies are entitled to a minimum of 25% of the offer shares.
- Eligible employees may apply for shares up to Rs 5 lakh, with bids initially considered for an amount up to Rs 1 lakh. If the employee portion remains undersubscribed, it will be allotted proportionately for values exceeding Rs 2 lakh, as long as the total allocation to an employee does not exceed Rs 5 lakh.
Bidding Details:
- Only non-retail investors are permitted to place bids on the specified day.
- Non-retail investors can express their interest in carrying forward their unallotted bids to the following day (Friday) for potential allocation in the unsubscribed portion of the retail category.
- The bidding process takes place during trading hours through a separate window on stock exchanges, commencing at 9:15 am.
- Retail investors can place their bids exclusively on Friday.
Market Reaction:
This development has garnered significant attention from investors, with the stock’s sharp decline sparking discussions about the potential impact of the OFS on SJVN’s share price. For the latest updates on SJVN’s share price and stock performance, you can also refer to the National Stock Exchange (NSE) website.
Visit the NSE website for real-time updates on SJVN’s stock price.
Conclusion:
The SJVN OFS has introduced volatility to the company’s share price, making it an important development to monitor for both investors and stakeholders. As the offering progresses, it will be interesting to see how the market responds to this opportunity and whether SJVN can achieve its objectives related to public shareholding norms. Stay tuned for further updates on this evolving situation.
SJVN OFS: Stock Drops 10% as Floor Price Reflects 16% Discount