JPVL Strikes New Deal With JSW Energy

The JP Group is in the groove, a day after Reliance Power called off the deal. On Thursday (25th September 2014) Sajjan Jindal controlled JSW Energy inked the pact with the JP Group. They have signed an alliance to acquire the former three hydropower plants which initially Reliance Power had agreed to acquire.

JSW Energy in the stock market disclosure announced the signing of binding Memorandum of Understanding (MoU) with Jaiprakash Power Ventures (JVPL) for operating plants with an aggregate capacity of 1891 MW. The MoU comprises of 100% acquisitions by JSW of three operational plants of JVPL. The portfolio consists of 300 MW Baspa-II hydro electric plant, 1091 MW Karcham Wangtoo hydro electric plant and 500 MW Bina thermal power plant. The financial details of the deal are not yet disclosed.

Jaiprakash Group, which has a huge debt of Rs 60000 crore, has been trying to sell its asset to pay off the huge debt. This has been the third attempt of JPVL to strike the deal to sell off its assets. After Reliance Power called off the deal on Wednesday, the shares of Jaiprakash Associates plunged down by 19%. However, today in early morning trade, shares of JP Group were trading up by nearly 10% after the company signed the binding memorandum with JSW Energy.