Diversified infrastructure group Jaiprakash Associates today said it will raise up to Rs 500 crore through debt and also sell nearly 5 per cent of its holding in subsidiary Jaypee Infratech (JIL).
The company would raise Rs 500 crore by private placement of unsecured commercial papers - short-term debt, but it did not specify the amount to be raised by selling shares in JIL, which is constructing the 165-km Yamuna Expressway connecting Greater Noida and Agra.
The board of directors took a decision to raise the debt at its meeting held on Monday, Jaiprakash Associates said in a filing with the Bombay Stock Exchange.
The company also plans to disinvest/offer 6 crore equity shares out of 121.50 crore equity shares of Rs 10 each held by the company in JIL, it said.
Earlier in March 2008, ICICI Bank had purchased one per cent stake in JIL for Rs 250 crore and had also granted a long-term loan of Rs 900 crore.
JIL is reportedly looking at raising Rs 3,000 crore through an initial public offer.
Jaypee Associates in its annual report had said that it has pledged 28.95 crore shares of JIL and also executed non disposal undertaking for a further 20.26 crore shares as collateral security for Rs 3,000 crore loan from ICICI Bank. As on March 31, 2009, the outstanding loan to JIL was Rs 1,675 crore.
Shares of the company closed at Rs 234.70, up 1.19 per cent from the previous close on BSE.
