In the stock market today, SJVN (Satluj Jal Vidyut Nigam) witnessed a 10% drop in share price during early trades on BSE. This came as the offer for sale (OFS) was initiated for non-retail investors. Retail investors, on the other hand, have the opportunity to bid in the OFS starting tomorrow, Friday.
The stock commenced trading at ₹74.69, a significant decrease from the previous day's closing at ₹81.75. It plunged by 10% to reach ₹73.53 on BSE.
It's noteworthy that SJVN's share price has seen a substantial rise of 173% from its 52-week lows of ₹29.90 recorded on September 30, 2022, on BSE. Year-to-date, the stock has surged by an impressive 139%, showcasing its growth in the market compared to the Sensex, which has witnessed a 10% increase up to September 20.
The government's plan for divestment includes selling a 4.92% stake in SJVN, inclusive of a Green Shoe option of 2.46%, at a floor price of ₹69 per share through a two-day OFS. At this floor price, the sale of the stake would accumulate over ₹650 crore.
Furthermore, SJVN's board of directors is scheduled to convene on September 23 to deliberate and authorize the raising of funds through asset securitization.
In another significant update, SJVN signed a Memorandum of Understanding (MOU) with PFC for financial assistance for diverse projects, particularly focusing on renewable energy and thermal generation projects. The total project cost for these initiatives is approximately ₹1,18,826 crore.
PFC's financial backing in the form of a term loan is tentatively proposed to range between ₹80,000 crore to ₹90,000 crore under the MOU, showcasing a substantial commitment to the realization of these crucial projects. This funding might be further increased to cater to the specific requirements of renewable energy projects.
However, SJVN reported a decline of over 55% in its consolidated net profit to ₹271.75 crore in the June quarter of FY24. The company's total income also saw a dip, decreasing to ₹744.39 crore in the first quarter of the current fiscal from ₹1,072.23 crore in the year-ago period.
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