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Big Jaypee Infra IPO on Thursday

Diversified business conglomerate Jaypee Associates Ltd will launch an initial public offer (IPO) of equity shares of its infrastructure arm, Jaypee Infratech, on April 29. HT reports.

business Updated: Apr 27, 2010 22:50 IST
HT Correspondent

Diversified business conglomerate Jaypee Associates Ltd will launch an initial public offer (IPO) of equity shares of its infrastructure arm, Jaypee Infratech, on April 29.

The company expects to raise around Rs 2,300 crore through the offer of shares in its infrastructure arm that is building the 165-km Yamuna Expressway connecting Greater Noida with Agra.

The IPO consists of fresh equity shares aggregating Rs 1,650 crore and another 6 crore shares held by Jaypee Associates in Jaypee Infratech.

"The price band has been fixed from Rs 102 to Rs 117 per equity share. A discount of 5 per cent on the issue price will be offered to the retail individual bidders whose bid amount does not exceed Rs 1 lakh," the company said in a statement.

The price would be decided through a 100 per cent book building process. The issue closes on May 4, 2010.

Apart from the Yamuna Expressway that is slated to be complete by 2011, the group had also bagged the 1,047-km-long Ganga Expressway that connects Greater Noida with Balia in Eastern Uttar Pradesh.

Further, the company expects to make an investment of around Rs 70,000 crore for the Ganga Expressway over the next five years.

"We will require about Rs 70,000 crore for the entire project, which will include the land acquisition cost," said Sameer Gaur, director-in-charge of Jaypee Infratech.