Govt to earn Rs 1,000 crore from SJVNL IPO at issue price
The government will realise over Rs 1,000 crore through stake sale in SJVNL--its first disinvestment this fiscal--at the issue price of Rs 26 a share.business Updated: May 05, 2010 14:42 IST
The government will realise over Rs 1,000 crore through stake sale in SJVNL--its first disinvestment this fiscal--at the issue price of Rs 26 a share.
The issue price, fixed by an empowered group of ministers (EGOM) on Tuesday, will fetch the UPA government the lowest amount so far through disinvestment in its second term.
Satluj Jal Vidyut Nigam Ltd (SJVNL) is offloading 10 per cent of the Centre's equity or 41.5 crore shares in the IPO that closed on Tuesday.
The issue has generated good demand among investors and got subscribed 6.61 times.
The offer also saw a robust participation from retail investors and the portion reserved for them was subscribed 3.11 times.
SJVNL is the sixth public sector unit lined up for disinvestment by the UPA government in its second term.
Most PSUs divested by the UPA in the second term did not get a good response from retail investors.
SJVNL is a joint venture between the Centre and Himachal Pradesh with the former holding 74.5 per cent stake and the latter 25.5 per cent.
With 10 per cent equity dilution, the Centre's stake would come down to 64.5 per cent.
The current power generation capacity of the company is 1,500 MW and it plans to augment this capacity by about 1,200 MW by the end of the current 11th Five-Year Plan.