Debt for the Jaypee group is seen at around Rs.60,000 crore, of which Jaiprakash Power Ventures alone had debt of Rs.17,887.72 crore at the end of the September quarter. The firm has started talks with its bankers to refinance debt worth Rs.10,000 crore.
In the last two years, the group has been selling assets to reduce debt. In a recent deal, Aditya Birla Group’s Ultratech Cement Ltd agreed to buy Jaiprakash Associates’s two cement plants in Madhya Pradesh for Rs.5,400 crore.
The stock should now slowly move towards Rs.14-15, especially after Jaiprakash Power Ventures bagged the Amelia (North) mine in Madhya Pradesh quoting Rs.712 per tonne and the Second Unit of 660 MW of the Jaypee Nigrie Super Themal Power Project or JNSTPP starting commercial operation with effect from 00.00 hours of February 21, 2015.