COMPANY LAW
| Jaiprakash Power to absorb two subsidiaries Thu, 17 Feb 2011 |
| NEW DELHI: Jaiprakash Power Ventures Ltd. (JPVL) has announced the merger of its two subsidiaries — Jaypee Karcham Hydro Corporation (JKHCL) and Bina Power Supply Company (BPSCL) — with itself. According to the merger scheme, JKHCL shareholders will get two shares of JPVL for every 10 shares of JKHCL. BPSCL shareholders would get two shares of JPVL for every 13 shares. “With the proposed amalgamation, JPVL as a standalone company shall have a power portfolio of 4,520 MW of which 2,200 MW (including 700 MW already in operation) will be operational within the XI Plan,” Jaiprakash Associates Executive Chairman Manoj Gaur said here. The merger would be effective from April 1. JKHCL, in which JPVL has 56.9 per cent stake, is setting up a 1,000 MW hydro project in Himachal Pradesh, expects to commission its first 250 MW plant by March. BPSCL, a wholly-owned subsidiary of the company, has already embarked on a 1,500 MW thermal power project at Bina in Madhya Pradesh. First phase The first phase of the project with 500 MW (2X250 MW) capacity would be completed in 2011-12. Mr. Gaur said the company would raise Rs.3,500 crore to fund the expansions. “We had an enabling board resolution to raise Rs.2,500 crore earlier. Now, we have agreed to increase it to Rs.3,500 crore,” he said. JPVL, directly and through its subsidiaries, is implementing 13,720 MW hydro and thermal power projects. Buoyed by the expansions, the company expects its top line to go up to Rs.800 crore by March this year and to Rs.2,200 crore in the next fiscal and further to Rs.3,500 crore in 2012-13. The bottom line of the company is also expected to rise to Rs.550 crore in 2012-13 from the estimated Rs.125-150 crore this fiscal |
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