SJVN offers to offload 10 per cent stake via IPO

The Satluj Jal Vidyut Nigam (SJVN), a Shimla-based profit making joint venture hydro-electric PSU, which entered the market with its initial public offering (IPO) to offload its 10-per cent stake, yesterday launched ambitious plans to tap alternate energy sectors like solar and wind energy, in addition to ongoing hydro-power projects within and outside India.

The company's 1500 MW flagship Nathpa-Jhakri hydel project generates an annual income of around Rs450 crore annually and is the largest hydro power project in India. The company has on hand two mega projects in Himachal Pradesh and six others in India, Nepal and Bhutan.

SJVN chairman and MD H K Sharma while unveiling the company's IPO said the company had a very strong profile, operating profit and experience in the hydro-power sector. Also its dividend pay outs have been in the region of 32 per cent.

Sharma said the company planned to commission the World Bank funded 412 MW Rampur project by September 2013 and this would fetch the company and additional Rs200 crore.

He said the public offer of 10 per cent approved by the central government to post 41.5 crore shares in the Rs23-26 price range would be most lucrative from which the company planned to raise between Rs954 crore to Rs1,080 crore through the issue which closes on 3 May.

Sharma said the financial strength of the company was so good it was in a position to meet a large chunk of investments in the upcoming projects on its own.
The state run company is a joint venture between the centre and the Himachal government with the centre holding 74.5 per cent stake.