JP Asso, JP Power ventures slip up to 14% as deal with ADAG called off

MUMBAI: Shares of Jaiprakash Associates and Jaiprakash Power Ventures tanked 12-14 per cent in early trade after talks with Anil Dhirubhai Ambani Group fell apart due to a "difference of commercial aspects".

Reacting to the news Jaiprakash Power Ventures slipped as much as 12.4 per cent, while Jaiprakash Associates plunged as mcuh as 14.4 per cent in trade.

At 09:45 a.m.; Jaiprakash Associates was at Rs 28.35, down 10.99 per cent, on the BSE. It touched a low of Rs 28.25 in trade so far.

Jaiprakash Power Ventures was at Rs 12.30, down 9.89 per cent, on the BSE. It touched a low of Rs 11.95 in trade so far.

Reliance said the deal ended due to "prevailing regulatory uncertainties, and tariff issues, which impact valuations".

The deal for the three plants, with a combined capacity of 1,800 megawatts, was first announced in July and would have made Reliance the largest private power generator in India.

Jaiprakash Power Ventures has a generation base of 1700 MW Hydro power (1000 MW Karcham Wangtoo, 300 MW Baspa II, and 400 MW Vishnu Prayag) and 1160 MW thermal power, including 500 MW Bina thermal project and 660 MW Nigrie thermal power project.