MUMBAI: CARE has assigned 'CARE IPO Grade 4' to the proposed initial public offer of 1040 lakh equity shares of Jaiprakash Power Ventures Ltd. The grade indicates above average fundamentals.
The grading reflects the long track record of the promoters in hydro power sector, group support in terms of execution capabilities as well as resourcefulness and encouraging prospects of the power sector in the medium term. The grading also takes into account performance of the existing hydro power project in operation, project implementation status along with associated risk and financial tie up in respect of all envisaged projects under IPO.
Jaiprakash Power Ventures is a special purpose vehicle promoted by Jaiprakash Associates Ltd in December 1995 to build, own, operate and maintain the Vishnuprayag Hydel power project with an installed generation capacity of 4*100 MW. It is a run of the river hydro power project across the river Alaknanda, Uttarakhand.
The Vishnuprayag project has been fully commissioned in phases from June to Oct 2006. The approved cost of project by UPSERC is Rs 1682.72 crore, which has been funded with debt equity of 2.33.
Jaiprakash Power Ventures has executed a final power purchase agreement with the UPPCL dated January 16, 2007. The agreement is valid for a period of thirty years, which can be extended further for a period of twenty years upon mutually agreed terms.
In FY07, Jaiprakash Power Ventures earned total income of Rs 214 crore including net revenue from sale of energy and incentives. The profit after tax was Rs 72 crore after providing for depreciation of Rs 36 crore and payment of interest of Rs 91 crore.
During nine month period Apr-Dec 2007, Jaiprakash Power recorded total income of Rs 307 crore, operating profit of Rs 258 crore (84% margin) and net profit of Rs 149 crore (48% margin).
In December 2007, Jaiprakash Power Ventures undertook implementation of 1000 MW (2 x 500 MW), subsequently increased to 1320 MW(2x660 MW) coal based thermal power project at Nigrie, Madhya Pradesh which was earlier awarded to parent company Jaiprakash Associates. The project has been transferred to Jaiprakash Power.
Jaiprakash Power plans substantial investment in its group companies. It has proposed to invest in equity of the group company, Jaypee Karcham Hydro Corporation Ltd. to the extent of 55 per cent, which is currently implementing 1000 MW (4 X 250 MW) hydro-electric project at Kinnaur in Himachal Pradesh.
Further, Jaiprakash Power proposes to invest in equity of Jaypee Powergrid to the extent of 23 per cent, which is a joint venture company setup between Jaiprakash Hydro Power and Powergrid Corporation of India, to implement the transmission systems for evacuation of power from JKHCL’s hydro power project.
The grading reflects the long track record of the promoters in hydro power sector, group support in terms of execution capabilities as well as resourcefulness and encouraging prospects of the power sector in the medium term. The grading also takes into account performance of the existing hydro power project in operation, project implementation status along with associated risk and financial tie up in respect of all envisaged projects under IPO.
Jaiprakash Power Ventures is a special purpose vehicle promoted by Jaiprakash Associates Ltd in December 1995 to build, own, operate and maintain the Vishnuprayag Hydel power project with an installed generation capacity of 4*100 MW. It is a run of the river hydro power project across the river Alaknanda, Uttarakhand.
The Vishnuprayag project has been fully commissioned in phases from June to Oct 2006. The approved cost of project by UPSERC is Rs 1682.72 crore, which has been funded with debt equity of 2.33.
Jaiprakash Power Ventures has executed a final power purchase agreement with the UPPCL dated January 16, 2007. The agreement is valid for a period of thirty years, which can be extended further for a period of twenty years upon mutually agreed terms.
In FY07, Jaiprakash Power Ventures earned total income of Rs 214 crore including net revenue from sale of energy and incentives. The profit after tax was Rs 72 crore after providing for depreciation of Rs 36 crore and payment of interest of Rs 91 crore.
During nine month period Apr-Dec 2007, Jaiprakash Power recorded total income of Rs 307 crore, operating profit of Rs 258 crore (84% margin) and net profit of Rs 149 crore (48% margin).
In December 2007, Jaiprakash Power Ventures undertook implementation of 1000 MW (2 x 500 MW), subsequently increased to 1320 MW(2x660 MW) coal based thermal power project at Nigrie, Madhya Pradesh which was earlier awarded to parent company Jaiprakash Associates. The project has been transferred to Jaiprakash Power.
Jaiprakash Power plans substantial investment in its group companies. It has proposed to invest in equity of the group company, Jaypee Karcham Hydro Corporation Ltd. to the extent of 55 per cent, which is currently implementing 1000 MW (4 X 250 MW) hydro-electric project at Kinnaur in Himachal Pradesh.
Further, Jaiprakash Power proposes to invest in equity of Jaypee Powergrid to the extent of 23 per cent, which is a joint venture company setup between Jaiprakash Hydro Power and Powergrid Corporation of India, to implement the transmission systems for evacuation of power from JKHCL’s hydro power project.
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