The group’s Rs 1650 crore IPO opens on April 29
As Jaypee Infratech Limited(JIL), part of the Rs 7000 crore Jaypee Group plans to hit the markets with an initial public offering(IPO) to part fund its Rs 9739 crore Yamuna Expressway and integrated township project, Jaiprakash Associates Ltd(JAL), another group company, is all set to expand its presence in Gujarat.
"Around Rs 80 crore worth infrastructure tenders are to be released for the proposed international airport at Federa coming up near Navagam village near Dholera special investment region (SIR). We are interested in entering the bidding", said Manoj Gaur, executive chairman at JAL. He declined to give out further details.
JAL is adding another 2.5 million tonnes to its already existing 5 million tonnes per annum(mtpa) cement plant in Kutch with an investment of Rs 1500 crore. The company has already commissioned 5 mtpa cement plant in Kutch involving an investment of Rs 2,500 crore. It is also in the process of investing around Rs 8000 crore to set up a 1320 mw coal based power plant in Kutch. "Work will commence next year and we expect to complete it within the next four years", Gaur told reporters here.
Meanwhile, JIL is entering the capital markets with a Rs 1650 crore IPO and an offer for sale of 6 crore equity shares by JAL. The price band has been fixed between Rs 102 and Rs 117 per equity share. The issue opens on April 29.
JIL has already invested around Rs 1250 crore worth equity in the the six lane expressway project and also tied up for the entire Rs 600 crore debt planned for the project. It is now looking at raising Rs 1500 crore from the IPO to support the project further.
Remaining proceeds from the IPO will go in for general corporate purposes. JIL has also received Rs 956 crore from real estate sales out of the net Rs 989 crore target.
The 165 kilometer long concrete six-lane expressway would connect Noida with Agra and reduce traveling time between the two cities from four to five hours now to two hours.
Apart from the constructing of this expressway, the company would also develop five townships on different locations along the road that will involve 25 million square meters of land along the Yamuna Expressway at five location for residential, commercial, amusement, industrial, and institutional purposes.
JIL has got the rights for collecting toll tax for 36 years on the expressway and which is likely to be completed by March 2011.
Around 95 per cent of the land for the project has already been acquired.
The Jaypee Group is a diversified infrastructure conglomerate in India with interests in civil engineering and construction, cement, power, real estate, expressways and hospitality.
JIL is a part of the Jaypee Group, was incorporated in 2007 as a special purpose company to develop, operate and maintain the Yamuna Expressway.
