Mumbai: Shares of Reliance Power on Monday gained over 4 percent after the Anil Ambani Group firm signed an initial agreement to acquire all the three hydroelectric power plants of Jaiprakash Associates.
Reliance Power's scrip ended the day at Rs 94, up 3.47 percent on the BSE. During the day, it rose by 4.18 percent to Rs 94.65.
At the NSE, it went up by 4.13 percent to close the day at Rs 94.50.
Similar buying was seen at Jaiprakash Associates and Jaiprakash Power Ventures counter that gained 2.95 percent and 3.17 percent, respectively.
"Reliance CleanGen Ltd (RCL), a 100 percent subsidiary of Reliance Power Ltd, and Jaiprakash Power Ventures Ltd (JPVL), a subsidiary of Jaiprakash Associates Ltd (JAL), announced the signing of an exclusive Memorandum of Understanding (MOU), for the 100 percent acquisition by RCL of the entire hydroelectric power portfolio of JPVL," Reliance Power had said yesterday.
JPVL's hydroelectric power portfolio has an aggregate capacity of nearly 1,800 MW, fully in operation, the largest in the private sector in India, and with an asset base of over Rs 10,000 crore.
The portfolio comprises of the three plants, with an asset life of over 50 years, each using run-of-the-river technology to convert natural water flow to electricity, eliminating the need for a large reservoir.
JAL intends to utilise the entire proceeds of the proposed transaction to reduce its outstanding debt, and thereby deleverage its consolidated balance sheet, Reliance Power had said.
First Published: Monday, July 28, 2014, 18:04