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Wednesday, February 24, 2010

SJVNL IPO put on hold until next fiscal

The initial public offering of state-owned Satluj Jal Vidyut Nigam has been put on hold by the government after a lukewarm response to
the follow-on offers of NTPC and Rural Electrification corp.

"The IPO is slightly delayed, looking at what happened to REC and NTPC, the market is not conducive and it (IPO) could come in the first half of 2010-11," SJVNL CMD HK Sharma told reporters here.

The Centre holds 75 per cent stake in SJVNL, a joint venture between the Centre and Himachal Pradesh while the remaining stake remains with the state government.

The Government is disinvesting 10 per cent of its 75 per cent stake in SJVNL and is expecting to raise around Rs 1,200 crore from the stake sale.

The Board of the company has cleared the Draft Red Herring Prospectus (DRHP) for the IPO.

The Cabinet Committee on Economic Affairs in October last year approved 10 per cent disinvestment in SJVNL.

The follow-on offers of NTPC and REC were subscribed 1.2 and 3.12 times, respectively.

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