Institutional buyers put Rs 1,450 cr-bids for SJVN OFS; stock falls 13 pc on BSE

Institutional investors on Thursday oversubscribed the SJVN offer-for-sale (OFS), putting in bids worth over Rs 1,450 crore.

The government's 4.92 per cent share-sale offer in state-owned power producer SJVN was oversubscribed on Thursday with institutional investors bidding for over 20.91 crore shares against 8.70 crore shares reserved for them.

As per stock exchange data, non-institutional investors subscribed the SJVN issue by over two times.

At the indicative price of Rs 69.64 per share, the bids are cumulatively worth over Rs 1,450 crore.

The share-sale would open for subscription on Friday for retail investors, who would get additional discount over the floor price.

Shares of SJVN fell 13.05 per cent to close at Rs 71.08 apiece on the BSE.

In the 2-day OFS, the government is selling up to 19.33 crore shares or 4.92 per cent stake at a floor price of Rs 69 apiece. The issue includes a green-shoe option of over 9.66 crore shares or 2.46 per cent stake.

''Offer for Sale in SJVN received enthusiastic response from non-retail investors today. The issue was subscribed 2.4 times of the base size. Govt has decided to exercise the green shoe option,'' Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey posted on X.

The floor price is at a discount of 15.6 per cent over Wednesday's closing share price of Rs 81.75 on the BSE.

The government is expected to garner over Rs 1,300 crore from the share- sale.

Proceeds from the SJVN stake-sale would add to the government's disinvestment kitty in current fiscal year. So far this fiscal, the government has raised over Rs 5,600 crore from selling minority stakes in CPSEs.

The government holds 86.77 per cent stake in SJVN.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)