JPVL concludes sale of Himachal Baspa Power Company, shares gain over 6%

Jaiprakash Power Ventures shares surged over 6 per cent in the afternoon trade on Tuesday after the company announced that it has concluded the sale of Securities of Himachal Baspa Power Company to JSW Energy

Jaiprakash Power Ventures (JPVL) shares surged over 6 per cent in the afternoon trade on Tuesday after the company announced that it has concluded the sale of Securities of Himachal Baspa Power Company (HBPCL) to JSW Energy at an enterprise value of Rs 9,700 crore reduced by mutually agreed adjustments, including inter-alia Rs 300 crore which is payable upon receipt of certain additional consents and approvals related to the Karcham Wangtoo HEP.

At 2.17 pm, JPVL shares were trading 6.46 per cent higher at Rs 5.93. It opened at Rs 5.58 and had touched a high and low of Rs 6.05 and Rs 5.46, respectively, in trade so far.

Further, JPVL has also paid a compensation of Rs 150 crore to HBPCL, with profit and loss from these plants accruing to it from September 1, 2015. The company has also entered into a binding memorandum of understanding with JSW Energy for sale of 100 per cent stake of its 500 MW Bina Thermal Power Plant to JSW Energy.

For the quarter ended June 2015, JPVL posted net profit of Rs 64.94 crore, down 6.09 per cent, against Rs 69.15 crore in the corresponding quarter a year ago.