SJVN shares tank 10% as two-day OFS begins today

Shares of SJVN Ltd tanked 10% in early deals on Thursday after the government said it would sell up to 4.92 percent stake in the state-run hydroelectric power generator through an Offer for Sale (OFS). 

SJVN shares fell 10.05% to Rs 73.53 on Thursday against the previous close of Rs 81.75 on BSE. The crash in the stock comes after it hit a record high of Rs 83.69 in the previous session.  

Market cap of the firm slipped to Rs 29465 crore in the current session. A total of 27 lakh shares changed hands amounting to a turnover of Rs 20.18 crore on BSE. SJVN shares have a beta of 1.1, indicating high volatility in a year. 

The stock hit a 52-week low of Rs 29.90 on September 30, 2022 . 

The OFS will begin today with the government offering up to 9,66,72,962 equity shares via a two-day share sale. The floor price of the offer is fixed at Rs 69, a 15.59 per cent discount to SJVN's Wednesday's closing price of Rs 81.75 on BSE.  

OFS for non-retail investors will open today, September 21, while that for retail investors will open on Friday, September 22. 

The base offer constitutes 2.46 per cent of the total issued and paid-up capital of the company. In case of oversubscription, SJVN plans 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. 

In terms of technicals, the relative strength index (RSI) of the stock stands at 73.1, signaling it's trading in the overbought zone. SJVN shares are trading higher than the 20 day, 50 day, 100 day and 200 day but lower than the 5 day moving averages.       

In the previous session, SJVN shares hit their all-time high after the firm inked a memorandum of understanding (MOU) with Power Finance Corporation (PFC) for financial assistance to various diversified portfolio of projects costing around Rs 1,18,826 crore. The projects included majorly renewable energy projects and thermal generation project. The term loan financial assistance is tentatively proposed at 70% of the project cost, which is likely to be hiked for renewable energy projects. 

SJVN Limited is engaged in the business of generation of electricity and the tariff for power generation. The company manufactures and provides three key products and services: generation of electricity (hydro, wind and solar), consultancy and transmission. Its businesses include thermal power, hydro power, wind power, solar power, power transmission, consultancy and power trading.  

 

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