Govt plans Satluj Jal IPO by March
By bringing in Shimla-based hydropower company Satluj Jal Vidyut Nigam, the government is moving fast with its disinvestment process whereas although it is a lesser-known company, the government plans to raise well above Rs 1000 crore through the IPO.
However, it is the third to join the fray after National Hydro Power Corporation (NHPC) and Oil India‘s IPOs.
The company plans to file its draft red herring prospectus in the third week of January and is likely to hit the market by March.
Meanwhile, Satluj Jal, which has a hydropower capacity of 1500 MW, is implementing another 4000 MW over next 10 years, by spending Rs 23,000 crore. It will fund its plans through internal accruals and no money form the IPO will come to the company. Moreover, the government will sell 10% in the company to raise Rs 1,500 crore while the state government of Himachal Pradesh, which holds 25%, will retain its stake in the power firm.
On the other hand, Satluj Jal currently has a book value of Rs 15-16 per share and the issue is expected to be priced between Rs 35 and Rs 40 while the company has a paid up equity capital of Rs 4,108 crore and will be selling 41 crore shares to the public.
READ COMPLETE Analysis of Satluj Jal Vidyut Nigam Ltd. (SJVN)
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Category: IPO
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