SJVN OFS: Stock tanks 10% as floor price at Rs 69 reflects 16% discount

Shares state-run SJVN fell 10 per cent in Thursday's trade after its promoter decided to offload up to 9,66,72,962 equity shares via a two-day offer for sale (OFS) that kicked off today. The floor price of the offer was set at Rs 69, which was at a steep 15.59 per cent discount to SJVN's Wednesday's closing price of Rs 81.75 apiece. The President of India, acting through and represented by the Ministry of Power, Government of India, is the seller. The OFS is being undertaken in a bid to achieve the minimum public shareholding norms, as the government still holds 86.77 per cent stake in the company. 

The stock fell 10.05 per cent to hit a low of Rs 73.53 on BSE. The base offer represents 2.46 per cent of the total issued and paid-up capital of the company. In an event of oversubscription, SJVN intends to buy additionally up to 9,66,72,961 shares and the offer would, in that case, represent 4.92 per cent of the total issued and paid up equity share capital of the company.

A total of 10 per cent of the offer is reserved for allocation to retail investors subject to receipt of valid bids. A minimum of 25 per cent of the offer shares are reserved for mutual funds and insurance companies. 

The eligible employees may apply for shares of up to Rs 5 lakh but bids by eligible employees will be considered for allocation, in the first instance, for an amount up  to Rs lakh only. If the employee portion remains under-subscribed, that portion will be allotted on a proportionate basis, for a value in excess of Rs 2 lakh, subject to the total allotment to an employee not exceeding Rs 5 lakh.

Only non-retail investors will be allowed to place today. While placing their bids, non-retail Investors can indicate their willingness to carry

forward their unallotted bids to Friday for allocation to them in the unsubscribed portion of retail category.

The offer would take place during trading hours on a separate window of the stock exchanges, commencing at 9:15 am. Only retail investors would be allowed to place their bids on Friday.

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