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Home >Companies >News >PGCIL to acquire 74% stake in JV Jaypee Powergrid for Rs351.64 crore

NEW DELHI : The public sector unit Power Grid Corporation of India Ltd (PGCIL) has signed an agreement with Jaiprakash Power Ventures Ltd (JPVL) to acquire 74% stake in Jaypee Powergrid Ltd for Rs351.64 crore.

After the acquisition of the 74% stake JPL will become a wholly-owned subsidiary of PGCIL. Jaypee Powergrid Ltd is a joint venture between Power Grid Corporation and JPVL.

Earlier this montn, Jaiprakash Power Ventures had announced that its board has approved disinvestment of 74% stake in Jaypee Powergrid to the PSU.

“Board of Directors of the company, in its 131st Meeting held on 2nd March, 2021 has approved disinvestment of 74% shareholding in Jaypee Powergrid," a BSE filing by the JPVL said.

For the December quarter of the current fiscal year, Jaiprakash Power Ventures reported a consolidated net loss of Rs8.61 crore as against Rs1,816.05 crore net loss in the same period a year ago. Its total income rose to Rs993.98 crore in the third quarter from Rs880.37 crore in the same period in 2019.

The joint venture has developed a 214 km long EHV power transmission project to supply electricity from Karcham-Wangtoo project in Himachal Pradesh. The power transmitted is meant for distribution and consumption in states of Himachal Pradesh, Haryana, Punjab, Uttar Pradesh and Rajasthan.

PGCIL is engaged in the business of transmission lines.

On Friday, shares of PGCIL rose 4.18% to close at Rs230.35 apiece on the BSE. On the NSE, it rose 4.14% to end at Rs230.20 apiece.

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