2.46 percent of the company’s total issued and paid-up capital is represented by SJVN‘s base offer. In the case of an oversubscription, SJVN plans to purchase up to an additional 9,66,72,961 shares.
State-run shares After deciding to sell up to 9,66,72,962 equity shares through a two-day offer for sale (OFS) that began today, SJVN dropped 10% in Thursday’s trading. The offer’s floor price was established at Rs 69, representing a significant 15.59% discount to SJVN’s Wednesday closing price of Rs 81.75 per share.
The seller is the Government of India’s Ministry of Power, acting on behalf of and in place of the President of India. The OFS is being conducted in an effort to meet the minimal public shareholding requirements because the government still owns 86.77% of the company.
On the BSE, the stock dropped 10.5% to a low of Rs. 73.53. 2.46 percent of the company’s total issued and paid-up capital is represented by the base offer. In the event of oversubscription, SJVN proposes to purchase an additional 9,66,72,961 shares, making the offer equivalent to 4.92 percent of the company’s total issued and paid-up equity share capital.
Retail investors will be eligible to receive 10% of the offer, assuming that they submit acceptable bids. Mutual funds and insurance firms are guaranteed at least 25% of the offer shares.
Employees who are qualified may apply for shares up to Rs. 5 lakh, but their bids will only be taken into consideration for distribution in the first instance if they are for an amount up to Rs. lakh. If the employee component is still under-subscribed, it will be distributed proportionally for a value over Rs. 2 lakh, with the maximum amount granted to a single employee remaining at Rs. 5 lakh.
Today, only institutional investors may place. Non-retail investors have the option to declare their readiness to carry over their unused bids to Friday for allocation to them in the retail category’s undersubscribed portion when submitting their bids.
The offer would be made in a different window of the stock exchanges during trading hours, starting at 9:15 am. On Friday, only retail investors will be permitted to submit their offers.