The stake is currently held by a consortium of lenders who had acquired it under the strategic debt restructuring process. The lenders have appointed SBI Capital Markets and EY as advisors to the transaction, being called Project Fire.
Lenders to the troubled Jaypee group have put on sale its listed power producing company Jaiprakash Power Ventures.
Banks like ICICI Bank, IDBI Bank and State Bank of India would be bringing in a new promoter by jointly divesting a minimum 30% stake in the troubled firm, which has around 2200 megawatt power generation capacity including thermal and hydro.
The stake is currently held by a consortium of lenders who had acquired it under the strategic debt restructuring process. The lenders have appointed SBI Capital Markets and EY as advisors to the transaction, being called Project Fire.
"The core committee on behalf of the joint lenders' forum (JLF) of the company has appointed SBI Capital Markets and EY as advisors to assist in sale of minimum 30% equity stake held by the consortium lenders in the company to an investor such that the new investor becomes the single largest shareholder in the company," the expression of interest issued by the advisors said on Monday.
While the advisors to the transaction didn't reveal the identity of the company, sources in merchant banking circle told DNA Money that the proposal is for Jaiprakash Power Ventures.
According to the presentation issued by EY, the banks and the financial institutions have the majority 51.8% stake acquired pursuant to the SDR process in February 2017 with promoters, headed by Manoj Gour controlling 29.7% with the public holding 18.5%.
Jaiprakash Power's portfolio includes 400 mw Vishnuprayag Hydro power plant in Uttarakhand and two coal fired projects - 500 mw Bina power plant in Madhya Pradesh and 1,320 mw Nigrie supercritical plant at Singrauli in Madhya Pradesh.
Of these projects, ICICI Bank is the lead banker among lenders to the 1320 mw project while IDBI Bank and SBI are lead bankers to the 500 mw thermal and 400 mw hydro project, respectively.
Jaiprakash Power also has a cement grinding facility at Nigrie in MP with a capacity of two-million-tonnes-a-year, which had started production in June 2015 following an investment of Rs 305 crore.
While revenues of the company dropped progressively from Rs 3,950 crore in FY15 to Rs 3,900 crore in FY16 and then to Rs 2,850 crore in FY17, its bottomline slipped from profit of Rs 150 crore in FY15 to a loss of Rs 300 crore in FY16. The losses further rose to Rs 750 crore in FY17.
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