Shimla: Share of Himachal Pradesh government in profit making SJVN, a federal government owned power generation company, is to increase by a percent, as the state government has not tendered any shares in a buyback offer.
“The share buyback process will be completed by March,” said Nand Lal Sharma, chairman-cum-managing director SJVN.
“Government of Himachal Pradesh has not tendered any shares in the buyback offer that was put out,” a SJVN executive not authorized to speak to the media told Hill Post.
SJVN is a joint venture company, set up in 1988, between the Federal Government and Himachal Pradesh government in which the state government had a shareholding of 25.51 percent.
On January 8, 2018 the SJVN board approved a share buyback proposal for 20,68,31,325 equity shares of Rs 10 face value, representing 5% of the total number of equity shares of the company.
The buyback price on offer was Rs 38.75 per equity share and the total consideration works out to Rs 801.47 crore.
The central government, one of the promoters of the company, and public shareholders who hold 10% shares have participated in the offer.
On extinguishing of the buyback shares, Himachal Pradesh government’s holding of 105,50,14,800 shares would increase its share in the company from 25.51% to 26.85%.
In 2016-17, SJVN declared a net profit of Rs 1544.14 crore and the accumulated profit for the 3 quarters of 2017-18 is 1092 crores. The company has declared a Rs 1.90 per share interim dividend for the current year.
Of all the investments made by Himachal Pradesh government in public sector enterprises (PSE), the investment in SJVN has proved to be the best one as it receives a handsome dividend each year from this centrally run PSE.
According to the SJVN website, the company has an installed generation capacity of 1964 MW which includes 1912 MW in hydropower, 47.6 MW Wind Power and 5 MW Solar Power.
The PSE operates the 1500 MW Nathpa Jhakri power station on River Satluj, which is the country’s largest hydropower project.
On an expansion mode, SJVN is executing the 1320 MW Buxar Thermal Power project and the 900 MW Arun – 3 project in Nepal that it secured after a stiff international competitive bidding process.
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.
