To raise the targetted Rs 40,000 crore through divestments, the government will put 10 per cent of its stake in Satluj Jal Vidyut Nigam (SJVN) on offer. With the price band set at Rs 23-26, the public offer is expected to raise around Rs 1,079 crore.
The initial public offering (IPO) of the miniratna category hydroelectric power generating company, which opens April 29 and closes May 3, will put on offer 41.5 crore shares of Rs 10 each. Taking a cue from earlier divestments such as National Hydroelectric Power Corp, where retail investor participation was minimal, the government has kept the offer price low and has also given a discount of 5 per cent for retail investors.
"The pricing has been structured to encourage retail subscription. There is also 5 per cent discount given to retail investors on the offer price," said Hemant Kumar Sharma, chairman and managing director, SJVN Ltd. The hydroelectric power generation company has an authorised share capital of Rs 7,000 crore.