SJVN Share Price Drops by 9% as Government Launches OFS at Heavy Discount

Orhan Wadia
Orhan Wadia  - Editor
3 Min Read
SJVN share price NSE: Shares of SJVN tanked in early morning trade on Thursday, September 21. Image: Official website

SJVN Share Price (Satluj Jal Vidyut Nigam) witnessed a sharp decline of 9 percent in early trade on September 21, following the government’s announcement of an Offer for Sale (OFS). The OFS is aimed at selling a 2.46 percent equity stake in SJVN at a significant discount.

Stock Performance Overview

Over the last six months, SJVN stock has seen an impressive surge, recording a remarkable growth of 163.56 percent. In contrast, the benchmark Nifty50 index has provided a more modest return of 16.33 percent during the same period.

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The Offer for Sale (OFS)

The government has initiated an Offer for Sale (OFS) to offload up to 4.92 percent equity stake in SJVN. This OFS includes an option to sell an additional 2.46 percent through oversubscription. The floor price for this offer has been set at Rs 69 per share, representing a substantial discount of nearly 15 percent compared to the previous closing price.

Market Reaction

At 10:24 am on September 21, SJVN stock was trading at Rs 74.50 on the NSE, reflecting a decline of 9.05 percent. This significant drop in stock value can be attributed to investor reaction to the government’s announcement.

Key Dates for Investors

The SJVN OFS is scheduled to open for non-retail investors on September 21, while retail investors will have the opportunity to participate on September 22.

Government’s Perspective

Tuhin Kanta Pandey, the Secretary of the Department of Investment and Public Asset Management (DIPAM), announced, “Offer for sale in SJVN opens tomorrow for non-retail investors. Retail investors can bid on Friday. The government will divest 4.92 percent equity including a Green Shoe option of 2.46 percent.”

At the floor price of Rs 69 per share, the sale of this 4.92 percent stake, equivalent to over 9.66 crore shares, is expected to generate over Rs 650 crore for the government.

Investors and market participants will closely monitor the developments and response to this OFS as it unfolds, impacting SJVN’s valuation and overall market sentiment.

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