Institutional investors placed offers of Rs 1,450 crore for SJVN OFS

22 Sep 2023 , 11:48 AM

The SJVN offer-for-sale (OFS) was oversubscribed by institutional investors on Thursday, who submitted bids totalling more than Rs 1,450 crore.

Institutional investors outbid each other for more than 20.91 crore shares of the 8.70 crore shares designated for them in the government’s 4.92% share sale offer in the state-owned power company SJVN on Thursday.

According to stock exchange data, the SJVN offering received more than twice as much interest from non-institutional investors.

The offers total more than Rs 1,450 crore at the indicated price of Rs 69.64 per share.

Retail investors would be able to subscribe for shares on Friday and receive a further discount above the floor price.

SJVN shares decreased 13.05% to settle at Rs 71.08 per share on the BSE.

The government is offering up to 19.33 crore shares, or 4.92% of the total, in the two-day OFS at a floor price of Rs 69 per share. Over 9.66 billion shares, or 2.46% of the offer, are subject to a green shoe option.

Non-retail investors responded enthusiastically to the offer for sale in SJVN today. 2.4 times the basic size of the issue were subscribed. Tuhin Kanta Pandey, secretary of the Department of Investment and Public Asset Management (DIPAM), announced on X that the government has decided to use the ‘green shoe option.’

The stake sale is predicted to bring in more than Rs 1,300 crore for the government.

The SJVN stake sale’s proceeds would increase the government’s disinvestment fund for the current fiscal year. The sale of minority holdings in CPSEs has helped the government raise more than Rs 5,600 crore so far this fiscal.

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