Jaiprakash Power up 5% on buzz of power units' sale talks

Moneycontrol NewsJaiprakash Power gained over 5 percent intraday Wednesday on a media report that the company is in talks with the Canada-based asset manager for sale of its power plants.According to a media report, Brookfield Asset Management was involved in initial stage talks with the power company to buy these plants of 4,000 MW. The deal could prescribe equity value at Rs 4,500-5,000 crore. If the deal fructifies, it could help Jaiprakash Power pare its whopping debt of Rs 12,000 crore. Meanwhile, last month, the Canadian fund was said to be in talks with lenders to invest in JPVL, which is under strategic debt restructuring (SDR). Brookfield was looking at infusing around Rs 1,000 crore in JPVL, people with direct knowledge of the developments at the company had told CNBC-TV18. With regard to SDR, the lenders are likely to convert JPVL’s debt into 51 percent equity in about two weeks, they said. The JPVL board will decide on equity conversion by lenders on February 13. The lenders had invoked SDR in 2016.The stock has fallen over 6 percent in the past five days, but has gained over a percent in the past three days owing to developments on its debt front. At 12:50 hrs, the stock was quoting at Rs 5.81, up Rs 0.06, or 1.04 percent on the BSE. It touched an intraday high of Rs 6.05 and an intraday low of Rs 5.80.