India SJVN IPO price range at Rs23-26 per share

India SJVN IPO price range at Rs23-26 per share
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First Published: Mon, Apr 26 2010. 07 16 PM IST
Updated: Mon, Apr 26 2010. 07 16 PM IST
Mumbai: The Indian government plans to raise as much as $240 million through an initial public offering of shares in state-run utility Satluj Jal Vidyut Nigam (SJVN), two sources with direct knowledge of the deal said on 26 April.
The offering of about 411 million shares, which will open on 29 April and close on 3 May, will be priced in a range of Rs23-26 per share, the sources said. They did not wish to be named as they were not authorised to speak with the media.
The sale will be the first by the government in this financial year, and is part of India’s efforts to offload stakes in roughly 60 state-run companies over the next few years.
The SJVN IPO comes in the wake of a $2.2 billion follow-on share sale in state-run miner NMDC, which was covered only on the last day of the offer helped by state-run investors with most bids at the bottom of the price range.
The tepid response to the NMDC offer as well as a preceding sale in power producer NTPC has renewed concerns over the timing and pricing of the asset sale pipeline.
India has set itself a target to raise about $8.6 billion through stake sales in state firms in the 2010-11 financial year, as it looks to raise funds for welfare programmes without stretching an already wide fiscal shortfall.
JM Financial, IDBI Capital, IDFC and SBI Capital Markets are among arrangers for the SJVN issue.
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First Published: Mon, Apr 26 2010. 07 16 PM IST