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SJVN Share Price Dips 10% Amidst Divestment Plans: What You Need to Know

SJVN Share Price Dips 10% Amidst Divestment Plans: What You Need to Know


SJVN (Satluj Jal Vidyut Nigam) witnessed its share price fall by 10% in early trading on the Bombay Stock Exchange (BSE) in a recent turn of events on the Indian stock market. The introduction of an Offer for Sale (OFS) for non-retail investors is what caused this significant decline. It’s interesting to note that the following day, retail investors will have the opportunity to take part in the OFS.

SJVN’s recent price changes are another example of how unpredictable and erratic the stock market can be. The stock’s value quickly declined, reaching 73.53 on the BSE, from its opening price of 74.69, which was noticeably lower than its previous closing price of 81.75. It’s important to consider these variations in light of SJVN’s performance as a whole throughout the previous year.

Surprisingly, the price of SJVN’s stock has significantly increased, rising by a staggering 173% from its 52-week low of $29.90, which was registered on September 30, 2022, on the BSE. The Sensex’s more modest increase of almost 10% year-to-date as of September 20 in contrast to this strong growth has drawn attention.

The Indian government’s intention to sell 4.92% of its shares in SJVN, including a Green Shoe option of 2.46%, is the driving force behind the recent stock market turbulence. This divestment is carried out through a two-day offer for sale and is established at a floor price of $69 per share. If successful, this action might bring in more than 650 crore for the government.

In addition to the OFS, the SJVN board of directors is preparing to meet on Saturday, September 23, to consider and approve funding via asset securitization. This shows that the business is actively looking for potential sources of funding.

SJVN Share Price Dips 10% Amidst Divestment Plans: What You Need to Know

According to the MOU, PFC will provide financial support equal to 70% of the project’s total cost, which could be between 80,000 and 90,000 crores. This commitment emphasizes the significance of these projects and the adaptability of the collaboration to meet changing project requirements.

Despite these recent financial changes, SJVN’s consolidated net profit, which stood at 271.75 crore for the June quarter of FY24, decreased by more than 55%. The company’s overall revenue also decreased, going from $1,072.23 crore in the same period last year to $744.39 crore in the first quarter of the current fiscal year.

In conclusion, the erratic stock price of SJVN offers an intriguing window into the workings of the Indian stock market. It’s vital to keep in mind that the stock has grown substantially over the past year, despite the current downturn, and that the company is actively working on strategies to generate money and support ambitious projects in the energy sector.

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