Shimla: Cash surplus SJVN, the public sector power generating company whose IPO opened today, stated that it would not need any capital infusion towards equity participation in the seven other projects awarded to it that would increase the total generating capacity by 3588 MW.
At a conference call HK Sharma, CMD of SJVN told reporters that with a cash reserve of about Rs 1500 crore, the company would not need to raise funds for meeting equity needs of the two project awarded in Himachal, three projects in Uttrakhand, and one each in Manipur and Nepal.
The two project in Himachal have a generation potential of 825 MW, the Uttrakhand project have a potential of 363 MW, the Nepal project awarded on a build, own and operate basis that was secured through and international bidding process has a potential of 900 MW and the Manipur project to be executed in collaboration with NHPC had potential of 1500 MW, said Sharma.
For setting up the Nepal hydro project, SJVN would be laying its own transmission line, he added.
The 412 MW Rampur project was in an advanced stage of execution and was due for commissioning in September 2013.
“After paying a dividend of about 32 % shared by the Himachal and Central government on a 25:75 ratio, SJVN was earning an yearly profit of about Rs 425 crores,†he said.
Commissioning of the Rampur project would increase annual profitability by about Rs 200 crore, he added.
About the Rs 23-26 price band per share, which the company has offered at its IPO, he said that it had been priced keeping the retail investor in mind. The IPO, which opened today, by evening, had attained a 42 % subscription.
SJVN is a joint sector company, which operates the 1500 MW Natpha Jhakri project wherein the Himachal government has a 25.5% stake and the balance is held by the central government.
The central government is off-loading 10 percent of its stake as part of a disinvestment plan through the IPO and expects to raise Rs 1080 crore at the upper price band.
Picture credit: Lalit Kumar
As Editor, Ravinder Makhaik leads the team of media professionals at Hill Post.
In a career spanning over two decades through all formats of journalism in Electronic, Print and Online Media, he brings with him enough experience to steer this platform. He lives in Shimla.
