Jaiprakash Hydro Power Ltd (JHPL) — a subsidiary of Jaiprakash Associates Ltd — will raise up to Rs 1,500 crore through issue of financial securities in the market and merge Jaiprakash Power Ventures Ltd with itself, according to a statement released by the company to the Bombay Stock Exchange.
The company’s board of directors has also approved merger of Jaiprakash Power Ventures Ltd (JPVL) with Jaiprakash Hydro Power with effect from April 1, 2009. JPVL is another subsidiary of Jaiprakash Associates.
As per the merger agreement, the shareholders of JPVL would get three shares in Jaiprakash Hydro Power Ltd for each share held.
Jaiprakash Hydro, which has a market capitalisation of Rs 4,537 crore, has a 63 per cent promoter holding.
The statement mentions that the company’s board of directors has approved raising of funds through Qualified Institutional Placement (QIP) of shares or issuing Foreign Currency Convertible Bonds (FCCBs) and depository receipts in the international market.
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