SJVN in the red

SJVN Ltd is the top loser on the BSE; the stock is in the red, opening 8.5% lower at Rs.74.69 and falling down further by 10% to an intraday low at Rs.73.53 and continues to trade around the same low levels.

The Govt yesterday announced that it will sell up to 4.9% stake in SJVN via Offer For Sale and has fixed floor price at Rs 69/per share, a discount of 16% over yesterday’s close.

Government will sell up to 2.46% stake in the company as base offer via OFS and has retained oversubscription option for another 2.46%.

The OFS opens on September 21 for non-retail investors and on September 22 for retail investors. Government will sell 9.66 crore shares with face value of Rs 10 as part of base offer and might sell 9.66 crore additional shares as part of green shoe option.

Govt owns 59.92% stake in the state-run hydropower generation company, and Himachal Pradesh owns 26.85% stake.