Jayprakash Associates to merge power arms: report
25 Jun 2009
Jaiprakash Power Venture Ltd, a wholly owned subsidiary of diversified construction firm Jaiprakash Associates Ltd, plans to merge two of its power units to help them sell shares worth up to Rs4,000 crore to institutional investors, the Business Standard said today, citing unnamed sources.
Jaiprakash Hydro Power Ltd and unlisted Jaiprakash Power Venture are expected to have a combined valuation of Rs16,000 billion crore, the newspaper said. Jaiprakash Associates owns 63 per cent of Jaiprakash Hydro and 100 per cent in Jaiprakash Power Venture.
The money would be used for half a dozen thermal and hydro power plants with a combined capacity of 8,000 mw that Jaiprakash Power Ventures is setting up, the paper said. After the merger, Jaiprakash Associates' stake in Jaiprakash Hydro will rise to about 80 per cent.
The board of Jaiprakash Associates and Jaypee Hydro had appointed a committee of directors to evaluate the merger. The Board of Jaiprakash Associates is meeting on 3 July to take a final decision.
