SJVN shares plummeted 12% on 21 September after the government launched an OFS (offer for sale) for up to 4.92% stake in the company at a discounted floor price.

The government has announced the sale of 9.67 crore shares of the company, representing 2.46% of the total equity, with an option to sell another 2.46% by retaining oversubscription.

The government has set the floor price of Rs 69 per share, which is a 15% discount to the company’s previous close.

The offer for sale will open on 21 September for non-retail investors, and for retail investors, it will open on 22 September.

As of 30 June, the government held 86.77% stake in the company.

After the proposed stake sale of 4.92%, the government will hold an 81.85% stake in the company, which is 6% more than the minimum public shareholding norms of a 75% promoter stake.

The Board of Directors of the company was set to meet on 23 September to consider raising funds through the asset securitisation method.

At 1:07 pm, the shares of SJVN were trading at Rs 72.45 or 11.38% below its previous close of Rs 81.75 on BSE.