Mumbai: Jaiprakash Associates Ltd, the flagship company of Jaypee Group, will raise up to Rs4,000 crore in overseas markets to fund its expansion plans that include setting up a new 500 MW power plant in Uttar Pradesh.
In the first phase it would raise $400 million (Rs1,616 crore) through the issue of foreign currency convertible bonds (FCCBs), including the green shoe option, a company official said.
Board of directors of the company, at its meeting on 14 July, approved the raising of up to $1 billion through issue of FCCB, Global Depository Receipts (GDR) and any other permissible instrument in the international market. Jaiprakash Associates has hired Barclays Capital of UK for the FCCBs issue, the official said.
The company, that posted 52.17% increase in net profit after tax at Rs140 crore for the quarter ended 30 June, has plans to set up a new coal-based thermal power plant in Churk district of UP.
The 500 MW power plant would be set up at a cost of about Rs2,000 crore (taking Rs4 crore for each MW), the official said, adding the company expects the new plant to be commissioned by 2010.
Jaiprakash Associates’ net profit after tax for first quarter of financial year 2006 was at Rs92 crore.
The total income of the company increased 8.76% to Rs1,005 crore for the first quarter ended 30 June from Rs924 crore for the corresponding quarter a year ago, the company said in a filing to the Bombay Stock Exchange (BSE).
The company declared a dividend of Rs1.50 on shares of Rs10 each (15%) for the financial year 2007-08.
Shares of the company closed at Rs838.60 down 3.68% on BSE on Monday.
Apart from the 500 MW power plant in Churk, the company is also setting up a 1,000 MW pit-head plant in Madhya Pradesh, work on which is yet to begin.
The Madhya Pradesh plant would reach its full capacity in two phases with 500 MW in each phase.
The company would use coal from the Amelia block for its first phase, while for the second stage, it will ask for additional coal blocks from the government.
Jaiprakash, last month, had announced plans to set up a cement factory in Kutch in Gujarat. The cement factory would cost about Rs850 crore and have an annual output of 24 lakh million tonnes.
The company has plans to enter a joint venture with the Gujarat Mining Development Corp. for the cement plant in which Jaiprakash will hold 74% stake.