SJVN Ltd. (SJVNL) was incorporated as Nathpa Jhakri Power Corporation Pvt. Ltd. in May 1988. Subsequently in September 2002, the name was changed to Satluj Jal Vidyut Nigam Ltd and further changed to present in September 2009. SJVNL is a hydroelectric power generation company established as a joint venture (JV) between the Centre and the Himachal Pradesh government. The Centre holds 75% stake in the JV, while the rest is owned by the state government. The company owns and operates Nathpa Jhakri Hydro Power Station (NJHPS) located in the state of Himachal Pradesh. Currently, it is the largest operational hydroelectric power generation facility in India based on installed capacity with an aggregate generation capacity of 1,500 MW.
Out of the total energy generated at NJHPS, 12% is supplied free of cost to the home state i.e. Himachal Pradesh. From the remaining 88% energy generation, 25% is supplied to HP at bus bar rates. Remaining power is allocated to the beneficiary states/Union Territories of Northern Region by Ministry of Power, Government of India. The company is currently constructing the Rampur Project, which is expected to be a 412 MW hydroelectric power generation facility located downstream from the NJHPS. The said Project is projected to be completed and commissioned in 2013.
Post issue, the Government of India's stake in the company will reduce to 64.47% from existing 74.50%.
5 % Discount to Retail Investor
Issue Objectives
Through this issue the Government of India is planning to divest 10.03% of its total stake in the company. This being an offer for sale, the company shall not receive any proceeds of this offer and all the proceeds less the expenses of the offer shall be received by the selling shareholder.
Satluj Jal Vidyut Nigam Limited IPO Grading / Rating CARE has assigned an IPO Grade 4 indicating above average fundamentals.
Issue Open: Apr 29, 2010 - May 30, 2010
Issue Type: 100% Book Built Issue IPO
Issue Size: 415,000,000 Equity Shares
Issue Size: Rs. 954.5 to 1079 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 23 - Rs. 26 Per Equity Share
Market Lot: 250 Shares
Minimum Order Quantity: 250 Shares
Listing At: BSE, NSE
Satluj Jal Vidyut Nigam IPO Review
Satluj Jal Vidyut Nigam Draft Prospectus
Satluj Jal Vidyut Nigam Allotment Status
Satluj Jal Vidyut Nigam Basis of Allotment
1 comments:
April 30, 2010 10:38 PM
The IPO has been priced fairly valued and there should be listing gains., this is based mainly on the 5% discount. The Govt seems to have learnt its lessons with the dismal performance of previous IPOs.
SJVNL may not have too big listing gains, but should quote around 26-28.
The Price to Book Value is expensive compared to NHPC and thus upside is limited. The 5% retail discount will save the issue from being a flop.
Post a Comment