Government to offload about 4.9% stake in SJVN via OFS

21 Sep 2023 , 10:50 AM

The Union government has proposed selling up to 4.9% of SJVN Ltd in an offer for sale (OFS) that will open on September 21.

The government would sell 9.66 crore shares (representing 2.46% equity) under the OFS, with an oversubscription option to sell an additional 9.66 crore shares.

The offer’s floor price has been set at Rs 69, representing an almost 16% discount to the current market price. The offer will be made through a separate window of the stock exchanges on Thursday, the ‘T’ day, and Friday (T+1) day.

Only non-retail investors will be permitted to put bids on T day, and they may signal their readiness to carry on their unallotted offers for T+1 day for allocation in the retail category’s unsubscribed portion.

Non-retail investors who placed bids on T day and elected to carry over their unallotted bids to T+1 day will be allowed to carry forward for allocation in the retail category’s unsubscribed portion.

On Friday, retail investors and non-retail investors who prefer to carry forward their unallotted bids will be able to bid on the offer. According to the OFS standards, the allocation will be at or above the floor price on a price priority basis at multiple clearing prices.

Approximately 25% of the offer is intended for mutual funds and insurance firms, with the remaining 10% reserved for ordinary investors.

There is also an employee category in which willing workers of the company may be issued a number of shares equal to up to 0.5% of the equity shares sold according to the offer.

For the proposed OFS, IIFL Capital Services, BoB Capital Markets, and SBI Capital Securities will function as brokers on behalf of the government.

For feedback and suggestions, write to us at [e-mail]