JSW Energy jumps on acquiring Himachal Baspa Power Company

JSW Energy jumped 8.93% at 82.60 at 10:45 IST on BSE after the company said that it has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100% stake in Himachal Baspa Power Company.

The company made announcement before market hours today, 17 November 2014.

Shares of Jaiprakash Power Ventures rose 1.53% to Rs 14.59.

Meanwhile, the S&P BSE Sensex was down 64.07 points or 0.23% at 27,980.

On BSE, so far 13.12 lakh shares were traded in the counter as against average daily volume of 3.4 lakh shares in the past one quarter.

The stock hit a high of Rs 84.45 and a low of Rs 77.30 so far during the day. The stock had hit a 52-week high of Rs 86.85 on 2 July 2014. The stock had hit a 52-week low of Rs 42 on 4 February 2014.

The large-cap has an equity capital of Rs 1640.05 crore. Face value per share is Rs 10.

JSW Energy said that the company has agreed to acquire from Jaiprakash Power Ventures and other shareholders, 100% stake in Himachal Baspa Power Company for a base enterprise value of approximately Rs 9700 crore, subject to mutually agreed adjustments.

The board of directors of Jaiprakash Power Ventures has approved the transfer of, the 300 megawatts (MW) Baspa II hydro electric project located at Himachal Pradesh, and the 1091 MW Karcham Wangtoo hydro electric project located at Himachal Pradesh into a separate company, i.e. the Himachal Baspa Power Company as a going concern through a scheme of arrangement under Sections 391 - 394 of the Companies Act, 1956.

Subsequent to the scheme of arrangement being made effective and subject to other terms and conditions agreed between the company and JPVL, JSW Energy proposes to acquire 100% of the securities of the Himachal Baspa Power held by JPVL.

Post acquisition, aggregate installed and operational power generation capacity of JSW Energy will enhance to 4,531 MW. The acquisition takes JSW Energy one step closer in achieving its aim of having 12,000 MWs power generation by 2025. Considering the operational track record of the projects with fairly stable hydrology, the acquisition will yield immediate cash flow and is expected to enhance JSW Energy's consolidated profits and returns and create significant synergies. The Baspa Project and Karcham Project have an estimated life of over 29 years and 37 years respectively & which are extendable for a further period of 20 years.

JSW Energy's consolidated net profit rose 88.8% to Rs 325.47 crore on 14.1% rise in total income to Rs 2372.28 crore in Q2 September 2014 over Q2 September 2013.

JSW Energy a part of JSW Group is into power generation, power transmission, mining, power plant equipment manufacturing and power trading.

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