Satluj Jal Vidyut Nigam Limited IPO Analysis
Incorporated in 1988, Satluj Jal Vidyut Nigam Limited (formerly Nathpa Jhakri Power Corporation Limited - NJPC) is a hydroelectric power generation company, originally established as a joint venture of the Government of India ( GOI ) and the Government of Himachal Pradesh (GOHP) to plan, investigate, organize, execute, operate and maintain Hydro-electric power projects.
Issue Open: April 29, 2010
Issue close: May 03, 2010
Price Band: Rs. 23 - Rs. 26 Per Equity Share
Minimum Bid Size: 250 Equity Shares
Face Value: Rs. 10 Per Equity Share
Issue Type: 100% Book Built Issue IPO
Maximum Subscription Amount for Retail Investor: Rs. 1,00,000
The shareholding stake of President of India, acting through the Ministry of Power, Government of India will be reduced to 64.47% from 74.50% post issue. The Governor, State of Himachal Pradesh holds 25.50% stake in the company.
IPO Grading / Rating:
CARE has assigned an IPO Grade 4 to Satluj Jal Vidyut Nigam Ltd (SJVNL) IPO . This means as per CARE, company has 'Above Average Fundamentals'.
Views of Aditya Birla Money stock trading broker on IPO
On the upper band of the issue price Rs 26, the company has priced its issue on a PE of 10.4x on its annualized earnings and P/BV of 1.58x on post-issue. By considering the factors such as : being one of the largest hydro power company trading at a relatively lower valuation compared to its peers, consistence financial performance & growing power demand, the issue price looks attractive. So, we recommend to buy ipo issue for long-term perspective.
Also Read: Satluj Jal Vidyut Nigam Limited IPO Information
1 comments:
I heard somewhere that Government wanted to fix its price around Rs 30 per share but due to minimal response of retail investors in some previous government IPOs, they bring down the price tom Rs 26. So at this price its looks good.
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