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Jaiprakash Power jumps as JSW Energy to buy hydropower plants

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Capital Market
Last Updated : Sep 26 2014 | 9:45 AM IST

Jaiprakash Power Ventures rose 9.79% to Rs 12.90 at 9:19 IST on BSE after the company said it signed a binding pact with JSW Energy for selling three hydropower projects.

The announcement was made after market hours on Thursday, 25 September 2014. Shares of JSW Energy was down 2.07% to Rs 70.80.

Meanwhile, the BSE Sensex was down 87.23 points, or 0.33%, to 26,381.13.

On BSE, so far 5.15 lakh shares were traded in the counter, compared with an average volume of 22.29 lakh shares in the past one quarter.

The stock hit a high of Rs 12.90 and a low of Rs 12.50 so far during the day. The stock hit a 52-week high of Rs 26.63 on 26 May 2014. The stock hit a 52-week low of Rs 11.20 on Thursday, 25 September 2014.

The stock had underperformed the market over the past one month till 25 September 2014, falling 25.16% compared with 0.12% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 45.22% as against Sensex's 4.56% rise.

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The mid-cap company has an equity capital of Rs 2938 crore. Face value per share is Rs 10.

JSW Energy (JSW) and Jaiprakash Power Ventures (JPVL), announced the signing of binding Memorandum of Understanding (MoU), for the 100% acquisition by JSW of three operational plants of JPVL, namely 300 MW Baspa-II Hydro Electric Plant, 1091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant.

The announcement comes a day after JPVL's proposed sale of three hydro projects fell through. Reliance Power (RPower) on Wednesday, 24 September 2014, called off its discussions with JPVL to buy three hydropower projects. JPVL announced that for reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with RPower was called off.

Net profit of Jaiprakash Power Ventures declined 25.54% to Rs 69.15 crore on 0.03% fall in net sales to Rs 786.02 crore in Q1 June 2014 over Q1 June 2013.

Jaiprakash Power Ventures, a part of the Jaypee Group was incorporated in 1994. The company owns and operates the 300 MW Baspa-II Hydroelectric Project at District Kinnaur, Himachal Pradesh , 400 MW Vishnuprayag Hydroelectric project, at District Chamoli, Uttarakhand and 1000 MW Karcham-Wangtoo at District Kinnaur, Himachal Pradesh. All the plants are run-of-the-river hydroelectric power projects.

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First Published: Sep 26 2014 | 9:17 AM IST

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