SJVNL IPO subscribed 23% till noon

The Rs 1,000-crore initial public offer (IPO) of state-run power producer Satluj Jal Vidyut Nigam today generated a good demand among investors and got subscribed 23 per cent in the first two hours of its opening trade.

The issue has received bids for 9.65 crore shares against 41.5 crore equities on offer, thereby getting subscribed 23 per cent, as per the latest data (till 1200 hrs) available with the National Stock Exchange.

Satluj Jal Vidyut Nigam Ltd (SJVNL) has come out with a public offer of 41.5 crore equity shares of Rs 10 each in the price range of Rs 23-26 per piece.

At the upper end of price band, the issue is valued worth Rs 1,079 crore.
    
The IPO, which is the first divestment of the government in the current fiscal, closes on May 3.
    
The Government is divesting 10 per cent of its 74.5 per cent stake in the company.
    
SJVN is a joint venture between the Centre and the Himachal Pradesh government. The Centre holds 74.5 per cent stake and the rest 25.5 per cent is held by the state government.
    
A discount of five per cent per share would be offered to retail investors as well as SJVNL employees.
    
SJVN, a hydroelectric power generating firm develop and operate Nathpa Jhakri Hydro Power Station (NJHPS).
    
Located on Sutlej (river) in Himachal Pradesh, NJHPS is currently, the largest operational hydroelectric power generation facility (on the basis of installed capacity) in the country with an aggregate generation capacity of 1,500 MW.
    
JM Financial Consultants, IDFC Capital, IDBI Capital Market Services and SBI Capital Markets are the book running lead managers to the issue.