JSW Energy slumps after signing MoU to acquire 3 plants of JPVL

JSW Energy lost 8.92% to Rs 65.85 at 11:56 IST on BSE, after the company signed a memorandum of understanding with Jaiprakash Power Ventures for buying three operational plants.

The announcement was made after market hours on Thursday, 25 September 2014. Shares of Jaiprakash Power Ventures (JPVL) jumped 8.09% to Rs 12.70.

Meanwhile, the S&P BSE Sensex was down 26.66 points or 0.1% at 26,441.70

On BSE, so far 8.81 lakh shares were traded in the JSW Energy counter as against average daily volume of 4.33 lakh shares in the past one quarter.

The stock hit a high of Rs 74.50 and a low of Rs 64.25 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 stock had underperformed the market over the past one month till 25 September 2014, falling 5.3% compared with 0.12% rise in the Sensex. The scrip also underperformed the market in past one quarter, falling 7.25% as against Sensex's 4.56% rise.

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

JSW Energy and Jaiprakash Power Ventures (JPVL), on Thursday, 25 September 2014 announced the signing of binding Memorandum of Understanding (MoU), for the 100% acquisition by JSW Energy of three operational plants of JPVL, namely 300 megawatt (MW) Baspa-II Hydro Electric Plant, 1091 MW Karcham Wangtoo Hydro Electric Plant and 500 MW Bina Thermal Power Plant.

Reliance Power (RPower) on Wednesday, 24 September 2014, called off its discussions with JPVL to buy three hydropower projects. JPVL announced that for reasons not attributable to any regulatory uncertainties but due to difference of commercial aspects, discussion with RPower was called off.

JSW Energy after market hours on Tuesday, 23 September 2014 said that Barmer Lignite Mining Company (BLMCL), a joint venture (JV) between Raj WestPower (RWPL), a wholly owned subsidiary of the company and Rajasthan State Mines and Minerals (RSMML), has received environmental clearance from Ministry of Environment, Forests & Climate Change (MoEFCC) to increase the mining capacity of its Kapurdi Lignite Mines, Rajasthan from 3.75 MTPA to 7 MTPA for four years.

JSW Energy's consolidated net profit rose 51.9% to Rs 325.47 crore on 3.3% rise in total income to Rs 2600.19 crore in Q1 June 2014 over Q1 June 2013.

JSW Energy is an integrated power generation company.

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