Jaypee to raise Rs 4,000 cr to fund expansion plans
Its promoters are planning to subscribe 1 cr equity shares of Rs 10 each through a preferential issue, said a source.india Updated: Dec 13, 2007 21:18 IST
Jaiprakash Associates is all set to raise Rs 4,000 crore ($1 billion) through a combination of fresh issues in overseas markets and a preferential issue to promoters to create a war chest to fund aggressive expansion plans in infrastructure, cement and sport complex businesses.
Showing confidence in the Rs 45,486-crore company's future growth, its promoters are planning to subscribe 1 crore equity shares of Rs 10 each through a preferential issue, a highly-placed source close to the development said.
"The price of the issue will be determined in accordance to the formula set by market regulator Securities and Exchange Board of India (SEBI), which is expected to be in the range of Rs 2,000 per share, resulting in a net infusion of Rs 2,000 crore,” he added.
The company is also planning to raise $600 million by issuing fresh shares in the form of global depository receipts (GDRs). The company had got approval to raise $1 billion in July this year though various instruments, including foreign currency convertible bonds (FCCBs), GDRs among others.
Of this, the company had already raised around $400 million in September, which was convertible at Rs 1,238.78 per share. On Thursday, its share price closed at Rs 2,071.45 per share. The company is now planning to raise the remaining amount of $600, sources said.
The company’s board is expected to meet shortly to take a final decision shortly. Despite repeated attempts, senior officials of the company were not available for comment.