The government would kick-start its disinvestment drive for the current fiscal tomorrow with the initial public offering of state-run Satluj Jal Vidyut Nigam.
The government, which is hoping to raise Rs 1,000 crore through the IPO, is offloading 10 per cent of its 74.5 per cent stake in the public limited company.
Satluj Jal Vidyut Nigam Ltd (SJVNL) is a joint venture between the Centre and the Himachal Pradesh government. The Centre holds 74.5 per cent stake and the rest 25.5 per cent is held by the state government.
An empowered group of ministers (eGOM) on Monday fixed the price band at Rs 23-26 for the IPO, which opens tomorrow and closes on May 3. SJVN would offer 41.5 crore shares to public.
The share sale would enable the government to raise funds in the range of Rs 954-1,079 crore.
A discount of five per cent per share would be offered to retail investors as well as SJVN employees.
The company received approval from the Cabinet in October last year for 10 per cent disinvestment of the government's stake in SJVNL.
The current power generation capacity of the company stands at 1,500 MW and it plans to augment this capacity by about 1,200 MW by the end of the current 11th Five-Year Plan.