On Thursday morning, as the offer for sale (OFS) for non-retail investors commenced, the price of SJVN’s shares on the BSE broke the 10% barrier. On Friday, the OFS will accept bids from retail investors. The stock began trading at 74.69 against the previous close of 81.75 and fell 10% to reach 73.53 on the BSE. From its 52-week low of 29.90 on the BSE on September 30, 2022, SJVN’s share price has increased 173 percent. The stock has increased by a staggering 139 percent year-to-date (as of September 20), compared to a 10 percent increase in the Sensex.
The government will sell 4.92 percent of the shares, including a 2.46 percent Green Shoe option, according to The Newz Diary. 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.
SJVN share price
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.
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.”
According to the MoU, PFC’s financial assistance in the form of a term loan is provisionally estimated to be between 80,000 and 90,000 crore, indicating a significant commitment to the completion of these crucial projects. According to that statement, these funds may be raised further to meet the unique demands of renewable energy projects, highlighting how this cooperation may be adjusted to changing project requirements.
In the June quarter of FY24, SJVN reported a decline in its combined net profit of more than 55%, to 271.75 crore. From 1,072.23 crore in the same period last year, the company’s total revenue dropped to 744.39 crore in the first quarter of the current fiscal.
Disclaimer: The aforementioned opinions and suggestions are those of separate analysts, professionals, and broking firms, not of The NEwz Diary. Before making any financial decisions, we suggest that investors speak with knowledgeable experts.
