Earlier, Sanjay Sagar, joint managing director & chief executive officer, JSW Energy Ltd said that the company’s deal with JP Power will be completed by March 31 or early April (2015)--this was their timetable. This means we are just near the final lap of this crucial deal. Meanwhile, the Competition Commission of India (CCI) approved the sale of two of Jaiprakash Power Venture Ltd’s hydropower assets to JSW Energy Ltd in February, 2015. JSW Energy Ltd had approached anti-trust regulator seeking clearance to complete the Rs.9,700 crore deal with Jaiprakash Power Ventures Ltd (JPVL). Debt for Jaiprakash Power Ventures stood at Rs.17,888 crore at the end of the September quarter.
The stock continues to be a buy on dips, as there are large upsides from interest rates in longer time frame.
JPVL acquired Bina Power Supply Company Limited (BPSCL) from Aditya Birla Group. BPSCL was set up by the Aditya Birla Group to set up a coal fired Thermal Power Plant at Bina in the state of Madhya Pradesh.
- Unit 1 commissioned in August, 2012
- Unit 2 commissioned in April, 2013
Besides, Jaypee Nigrie Super Thermal Power Project comprising 2 x 660 MW Super-critical Unit is likely to be the only plant to make reasonable ROE for JPVL.