SJVN board approves fundraising via securitization of assets after OFS gets oversubscribed
₹69 per share through the two-day OFS. The floor price of the SJVN share sale was fixed at a discount of 15.6 per cent over Wednesday's closing share price of ₹81.75 on the BSE. Non-institutional investors (NIIs) subscribed the SJVN issue by over two times, as per stock exchange data, At the indicative price of ₹69.64 per share, the bids are cumulatively worth over ₹1,450 crore.
"Offer for Sale in SJVN received enthusiastic response from non-retail investors today. The issue was subscribed 2.4 times of the base size. Govt has decided to exercise the green shoe option," Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey posted on X.
The government is expected to garner more than ₹1,300 crore from the share- sale. While the first day saw the non-retail portion get more than 3x the demand for the shares on offer, the OFS for retail investors - which opened on Friday, September 22, received 2.4x demand compared to the total number of shares on offer, according to stock exchange data. The proceeds from the SJVN stake-sale would add to the government's disinvestment kitty in current fiscal year.
So far this fiscal, the government has raised over ₹5,600 crore from selling minority stakes in CPSEs. The government holds 86.77 per cent stake in SJVN.
On Friday, September 22, shares of SJVN opened at ₹69.60 and rose around 5 per cent to hit an intra day high of ₹74.03, before settling 1.67 per cent higher at ₹72.27 apiece on the BSE. This was after a 13 per cent decline in its stock price on Thursday.
The stock is still up nearly 110 per cent so far in 2023. SJVN share price has surged 173 per cent from its 52-week lows of ₹29.90 which it hit on September 30, 2022, on BSE. SJVN reported an
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