Aug 20, 2013, 11.01 PM IST | Source: CNBC-TV18

JP Power may sell stake in 2 hydro power projs: Sources

CNBC-TV18 learns from sources that the two power projects include its 300 MW Baspa and 1200 MW Karcham Wangtoo plants.

JP Power may sell stake in 2 hydro power projs: Sources

Struggling to cut down its debt, Jaiprakash Power Ventures  is looking to sell stake in its two hydro power projects. CNBC-TV18 learns from sources that the two power projects include its 300 MW Baspa and 1200 MW Karcham Wangtoo plants.

The total cost for JP Power plants higher than Rs 10,000 crore. Sources say the power generator has approached players like CESC for the stake sale. However, they add, that CESC is reluctant to buy stake in JP Power’s projects.

CESC is unlikely to buy any stake and the company is currently in talks with foreign players for divestment of stake.

At 13:10 hrs Jaiprakash Power Ventures was quoting at Rs 13.75, up Rs 0.51, or 3.85 percent.

Jaypee Group, which owns JP Power, has a debt of nearly Rs 54,000 crore on its books, whish is one of the highest among Indian companies. The high debt is a result of rapid expansion in real estate, infrastructure, cement and power sectors over the past few years. JP Power has a consolidated debt of more than Rs 20,000 crore.

While, JP Power said it does not comment on market speculation, CESC did respond to CNBC-TV18's query.

Also Read: JP Associates' debt a worry, stk can rise to Rs 60: A Rathi

Jaiprakash Pow stock price

On April 17, 2014, Jaiprakash Power Ventures closed at Rs 16.03, up Rs 0.50, or 3.22 percent. The 52-week high of the share was Rs 29.50 and the 52-week low was Rs 8.55.


The company's trailing 12-month (TTM) EPS was at Rs 0.24 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 66.79. The latest book value of the company is Rs 21.93 per share. At current value, the price-to-book value of the company is 0.73.

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