SJNV Shares Slide Over 9% As Govt Kicks Off Stake Sale With Heavy Discount

SJVN is a joint venture of the Government of India and the Government of Himachal Pradesh. On Wednesday, it announced a stake sale with institutional investors submitting their bids on Thursday.

In morning trading on the BSE, SJVN shares dropped by 9.55 per cent to Rs 73.94 from the previous close to Rs 74.08 per share. ( Image Source :Getty, SJNV )

Shares of government-owned hydroelectric producer SJVN dropped over 9 per cent as Centre launched an offer for sale (OFS) for up to 4.92 per cent equity stake, at a discounted floor price. In morning trading on the BSE, SJVN shares dropped by 9.55 per cent to Rs 73.94 from the previous close to Rs 74.08 per share.

Formerly known as Satluj Jal Vidyut Nigam, SJVN is a joint venture of the Government of India and the Government of Himachal Pradesh. On Wednesday, the government announced that it would sell stakes in the state-owned power producer, with institutional investors submitting their bids on Thursday. In this two-day offer for sale (OFS), the government is offering up to 19.33 crore shares, equivalent to a 4.92 per cent stake, at a floor price of Rs 69 per share.

"SJVN Ltd proposes to sell up to 9,66,72,962 Equity Shares having a face value of Rs. 10 each, representing 2.46 per cent of the total issued and paid-up Equity Share capital of the company , on September 21, 2023 (T Day) (for non-Retail Investors only) and on September 22, 2023 (T+1 Day) (for Retail Investors and for non-Retail Investors who choose to carry forward their unallotted bids) with an option to additionally sell 9,66,72,961 Equity Shares (representing 2.46 per cent of the total issued and paid up equity share capital of the Company)," the PSU said in an exchange filing. 

 

The floor price for the SJVN share sale represents a 15.6 per cent discount compared to the closing share price of Rs 81.75 on the BSE the previous day. At this floor price, the sale of the 4.92 per cent stake is expected to generate over Rs 1,300 crore in revenue for the government, as per a PTI report. 

Retail investors will have the opportunity to participate in the share sale, with the added benefit of a discount over the floor price.

Currently, the government holds an 86.77 per cent stake in SJVN, of which 59.92 per cent is held by with Centre, 26.85 per cent by the Himachal Pradesh government, and the rest of 13.23 per cent with Public, as per the company website