JSW buys 2 Jaypee units for Rs 9,700 crore

Sajjan Jindal's JSW Energy on Tuesday said it would acquire Jaypee Group's thermal power plant at Bina in Madhya Pradesh, even as it concluded its earlier deal to buy the cash-strapped group's two hydropower projects for Rs 9,700 crore. 

"This is the largest transaction in the power sector in the country and two of JPVL's (Jaiprakash Power Ventures) most prized assets are going to JSW Energy, another notable player in the power sector," Jaypee group chairman Manoj Gaur said in a statement Indian stock market astrology prediction

JSW Energy did not disclose the price it is paying for buying the Bina plant, though market insiders pegged the deal size at Rs 3,500 crore. The developments take JSW Energy a step closer towards achieving its aim of having over 10,000 MW power generation capacity by 2025, the company said. 

"The acquisition helps in diversifying the power generation portfolio with high hydro power assets, besides increasing the share of long-term PPA (power purchase agreement) in our basket," Jindal said in a statement. "We plan to acquire Bina power project, that will further strengthen the business model of JSW Energy and also enhance our capacity to over 5,000 mw," he said. 

"JSW Energy has entered into a binding MoU with Jaiprakash Power Ventures Ltd to acquire 100% stake in the 500 mw Bina thermal power plant located in the Sagar district of Madhya Pradesh," the company said Commodity Market Astrology Tips

The Rs 9,700-crore deal to buy the 300 mw Baspa-II and 1,091 mw Karcham Wangtoo projects, both in Himachal Pradesh, were announced in November last year. 

"JPVL has also entered into a binding MoU with JSW Energy for sale of 100% stake of its 500 mw Bina thermal power plant to JSW Energy," JPVL said in a statement. 

Besides, JPVL has concluded the sale of securities of HBPCL to JSW Energy at an enterprise value of Rs 9,700 crore, including Rs 300 crore which is payable subject to some additional approvals for the Karcham Wangtoo project. Gaur said the closure indicated the Jaypee Group's focus on reducing debt and emerging as a leaner and more profitable corporate Jackpot Stocks Trading Tips

JPVL will continue to own the 400 mw Vishnuprayag hydel project, 500 mw Bina Thermal Power Plant and 1,320 mw Nigrie super thermal power plant. It will also continue to have 74% stake in JPL. All these plants are operational. Besides, 1,980 mw Bara thermal power plant being set up by its subsidiary, PPGCL, is expected to achieve commercial operation date in the current financial year.