Mumbai: Jaiprakash Hydro Power on Saturday said it will raise up to Rs1,500 crore through issue of securities in the domestic and international markets and merge Jaiprakash Power Ventures with itself.
In a filing to the Bombay Stock Exchange, the Jaiprakash Hydro said the board has approved the raising of funds by way of qualified institutional placement (QIP) of shares and issuance of foreign currency convertible bonds (FCCBs) and depository receipts in the international market.
Besides, the board of the company has approved the amalgamation of Jaiprakash Power Ventures with Jaiprakash Hydro Power, with effect from 1 April 2009.
Under the merger agreement, the shareholders of Jaiprakash Power Ventures would get three shares in Jaiprakash Hydro Power for every share held, the filing said.
The two power companies are subsidiaries of diversified conglomerate Jaiprakash Associates. As of March quarter, Jaiprakash Associates holds 63% in Jaiprakash Hydro.