Satluj to kick off divestment in FY11

Himachal Pradesh-based hydropower generation company Satluj Jal Vidyut Nigam Ltd will sell 410.8 million shares starting 29 April as part of the federal government’s plan to divest a 10% stake. The public offering, previously planned for early April, will now “go ahead as scheduled whatever the market conditions,” an official said on condition of anonymity. This will be the first state divestment in 2010-11. The government will decide, among other things, whether to offer a special discount for retail investors. According to the proposed offer document filed with the Securities and Exchange Board of India for approval, the company’s net asset value per equity share is Rs16.07. The government can expect to raise a minimum of Rs657 crore by selling shares at this level. The Indian government owns 75% in the firm while 25% is owned by the Himachal Pradesh government. Satluj Jal operates a 1,500MW hydroelectric plant on the Sutlej river in Himachal Pradesh. It’s seeking to increase capacity to 3,588MW through various projects in Himachal Pradesh, Uttarakhand and Nepal by 2017.