JP Power surges as potential buyers bid for stake in company; retreats

NEW DELHI: Shares of Jaiprakash Power Ventures shot up over 5 per cent in Tuesday's early trade to eventually end the day 1 per cent lower after Canada-based Brookfield Asset Management and Resurgent Power bade for the debt-ridden company, according to two people familiar with the matter.

Following the report, the stock climbed 5.8 per cent to hit a high of Rs 8.47 on BSE. It however ended the session 1 per cent lower at Rs 7.95.

Lenders to the company, led by ICICI Bank, had invited bids for at least 30 per cent in the beleaguered power utility, which is part of the Manoj Gaur-led Jaypee Group. The stake has been put on the block under the strategic debt restructuring (SDR) mechanism.

Resurgent Power, in which Tata Power and ICICI Ventures hold stakes, and Brookfield were among five companies that showed interest in Jaiprakash Power Ventures, ET reported.

The people said both have bid about Rs 7,000 crore, lower that the lenders’ expectation of about Rs 10,000 crore, for a stake in the company. Jaiprakash has debt of over Rs 12,000 crore and a market value of Rs 4,814.79 crore.