Shares of this PSU stock under the ‘mid-cap’ category fell around 10 percent on Thursday after Promoters initiated the offloading process of a 4.92 percent stake via an offer for sale.
With a market capitalization of Rs 29,115.85 crores, the stocks of SJVN Limited, a public sector undertaking (PSU) engaged in the ‘Power’ industry, fell 10 percent on Thursday and currently trade at Rs 74.09.
Such sharp movements in the stock were observed after the company’s Promoters initiated an offloading process of a 4.92 percent stake collectively, i.e., around 9.66 crore equity shares, via an Offer For Sale (OFS).
The OFS is taking place over a separate window on the 21st and 22nd of September 2023. The floor price for the offer is set to be Rs 69, a discount of around 15.6 percent to Wednesday’s closing price.
During the recent quarters, the company has successfully been able to increase its revenues as well as net profits with the former going up from Rs 503.77 crores during Q4FY22-23 to Rs 674.79 crores during Q1FY23-24, and, the latter taking a shift from Rs 146.89 crores to Rs 290.32 crores keeping the timeframe the same.
In addition, the company has improved its return ratios with the return on equity (RoE) increasing from 7.63 percent during FY21-22 to 10.06 percent during FY22-23, and, the return on capital employed (RoCE) moving up from 8.81 percent to 9.08 percent during the same time period.
According to the shareholding pattern data available for the June 2023 quarter, the company’s Promoters held an 86.77 percent stake, and the Foreign Institutional Investors (FIIs) held a 1.4 percent stake in the company.
SJVN Limited is involved in the business of generation as well as sale of power. The company operates by way of undertaking Projects pertaining to the generation of wind power, thermal power, and power transmission.
It implements projects in various states in India including Uttarakhand, Himachal Pradesh, Bihar, etc apart from overseas operations in Nepal and Bhutan.
Written by Amit Madnani
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