Jaiprakash Power Ventures gains on bargain hunting

Jaiprakash Power Ventures rose 1.83% to Rs 13.90 at 13:40 IST on BSE on bargain hunting after the stock slumped 17.62% in the preceding three trading sessions to Rs 13.65 on 5 March 2014, from a recent high of Rs 16.57 on 28 February 2014.

Meanwhile, the BSE Sensex was up 135.29 points, or 0.64%, to 21,412.15.

On BSE, so far 8.27 lakh shares were traded in the counter, compared with an average volume of 10.35 lakh shares in the past one quarter.

The stock hit a high of Rs 14.10 and a low of Rs 13.55 so far during the day. The stock hit a 52-week high of Rs 29.50 on 20 May 2013. The stock hit a record low of Rs 8.55 on 2 August 2013.

The stock had outperformed the market over the past one month till 5 March 2014, rising 6.47% compared with the Sensex's 5.01% rise. The scrip had, however, underperformed the market in past one quarter, sliding 33.09% as against Sensex's 1.52% rise.

The mid-cap company has an equity capital of Rs 2938 crore. Face value per share is Rs 10.

The recent fall in shares of Jaiprakash Power Ventures was triggered by the company's plan to sell two operational hydro-power plants to a consortium led by Abu Dhabi National Energy Company. The company made the announcement on Saturday, 1 March 2014. The stock slumped 15.51% to Rs 14 on Monday, 3 March 2014.

The board of directors of Jaiprakash Power Ventures at the meeting held on 1 March 2014 considered and accepted the recommendations of committee of directors as well as audit committee for divestment of the two of the company's operating plants namely, 300 megawatts (MW) hydro-electric plant and 1091 MW Karcham Wangtoo hydro-electric plant, subject to requisite statutory and regulatory approvals.

The divestment is proposed to be by way of hiving off of the aforesaid plants to two separate wholly-owned subsidiaries (under incorporation) through a scheme of arrangement to be sanctioned by the High Court/ Tribunal of competent jurisdiction with eventual transfer of ownership of the said subsidiaries to the purchasers, viz. consortium led by TAQA India Power Ventures (an indirectly owned and controlled subsidiary of Abu Dhabi National Energy Company PJSC), INDO-INFRA INC. (a large Institutional Canadian Investor) and India Infrastructure Fund-II (acting through IDFC Alternatives).

Jaiprakash Power Ventures reported a net loss of Rs 153.05 crore in Q3 December 2013, higher than net loss of Rs 97.58 crore in Q3 December 2012. Total income rose 17.22% to Rs 513.83 crore in Q3 December 2013 over Q3 December 2012.

Jaiprakash Power Ventures currently operates the largest hydroelectric power plant in the private sector in India.

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