Last year, ICICI Bank’s private equity arm had been in discussions with Jaypee Infratech to pick up a stake in the company. A senior Jaypee official confirmed that negotiations had taken place with ICICI Venture to buy a 1% direct stake and an additional 9% through convertible debentures. “However, once the discussions broke down we were able to quickly enter into a deal with the parent company,” said the executive.
In addition to ICICI Bank’s 1% shareholding, a Jaypee employee trust holds 1% in Jaypee Infratech. In addition, the company plans to shortly place another 3% equity with other investors. The parent company Jaiprakash Associates will hold the remaining 95% for the time being. A source said the company will go public at the appropriate time.
Jaypee Infratech has the rights of development of 25 million sq meters of land at five or more locations along the proposed Taj Expressway. The land could be used for commercial, amusement, industrial, institutional and residential purposes.
Meanwhile, Jaiprakash Associates on Sunday also signed the concession agreement with UP authorities for the Rs 40,000-crore Ganga Expressway project and deposited Rs 1,491 crore as bank guarantee for this. Jaypee Ganga Infrastructure Corporation will implement the 1,047 km-long six lane access controlled Ganga Expressway, which will link Greater Noida with Ballia in eastern UP.
Jaiprakash Associates won the contract to build the Ganga expressway on the basis of its bid, which was the lowest at 14,000 hectares. The project, which was floated by UP chief minister Mayawati soon after returning to power last year, attracted bids from 19 bidders, including Reliance Energy, Unitech and Gammon. The winner is supposed to manage the construction cost through toll collection and the land given to it at a concessional rate by the government for private development.
Land acquisition for the project is likely to be completed in the next two years, following which the construction will start.
The expressway is expected to be completed in five years from now. Jaiprakash Associates will acquire land for development at six locations across the expressway: Secunderabad, Etah, Rae Bareilly, Pratapgarh, Mirzapur and Varanasi.
Meanwhile, Jaiprakash Associates on Sunday also signed the concession agreement with UP authorities for the Rs 40,000-crore Ganga Expressway project and deposited Rs 1,491 crore as bank guarantee for this. Jaypee Ganga Infrastructure Corporation will implement the 1,047 km-long six lane access controlled Ganga Expressway, which will link Greater Noida with Ballia in eastern UP.
Jaiprakash Associates won the contract to build the Ganga expressway on the basis of its bid, which was the lowest at 14,000 hectares. The project, which was floated by UP chief minister Mayawati soon after returning to power last year, attracted bids from 19 bidders, including Reliance Energy, Unitech and Gammon. The winner is supposed to manage the construction cost through toll collection and the land given to it at a concessional rate by the government for private development.
Land acquisition for the project is likely to be completed in the next two years, following which the construction will start.
The expressway is expected to be completed in five years from now. Jaiprakash Associates will acquire land for development at six locations across the expressway: Secunderabad, Etah, Rae Bareilly, Pratapgarh, Mirzapur and Varanasi.
Link to the article: http://economictimes.indiatimes.com/News/News_By_Industry/ICICI_Jaypee_Infra_ink_Rs_1150-cr_deal/articleshow/2896629.cms
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