Satluj Jal Vidyut Nigam (SJVN) IPO Review

hydroelectric powerSatluj Jal Vidyut Nigam (SJVN) Limited is coming out with an IPO of 415,000,000 equity shares of face value Rs. 10 each.

The company is a hydroelectric power generation company, a 75:25 unlisted joint venture between the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). Currently, the company is engaged in designing, planning, developing, examining, organizing, executing, operating, as well as maintaining hydroelectric power projects.

Details of the Issue:
Issue Open: Apr 29, 2010 – May 03, 2010.
Issue Price : Rs.23-Rs.26.(Retail Investors to get 5% discount)
Market lot: 250 shares.

So what’s in store for retail investors in this IPO?

The expected EPS for current year is around Rs.2.5 and the Book value is at Rs.16.The stock is cheaper compared to its peers, but the issue price could have been priced lower. But still this is a good issue to apply for long term. Fundamentally good stock to buy & hold for long term and not for listing gains.

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6 Comments on “Satluj Jal Vidyut Nigam (SJVN) IPO Review”

  1. Its show that people can still discern between junk and decent offerings. With a decent low double digit multiple and good dividend yield SJVN it makes sense for retail investors who get a 5% discount to subscribe to it. It certainly makes 10 times more sense than subscribing to the absolute junk that is being offering in the primary market

  2. Yes Abhishek, a good issue. Still the Promoter(GOI) could have priced it around the Book value, which would have been 40% less from current issue price.

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