The board of directors of Jaiprakash Power Ventures on Mar. 1, 2014 accepted the recommendations for divestment of the two of the company's operating plants namely, 300 megawatts (MW) hydro-electric plant and 1091 MW Karcham Wangtoo hydro-electric plant, subject to requisite statutory and regulatory approvals.
The divestment is proposed to be by way of hiving off of the aforesaid plants to two separate wholly-owned subsidiaries (under incorporation) through a scheme of arrangement to be sanctioned by the High Court/ Tribunal of competent jurisdiction with eventual transfer of ownership of the said subsidiaries to the purchasers, viz. consortium led by TAQA India Power Ventures, an indirectly owned and controlled subsidiary of Abu Dhabi National Energy Company PJSC, INDO-INFRA INC., a large Institutional Canadian Investor, and India Infrastructure Fund-II acting through IDFC Alternatives.
Shares of the company declined Rs 2.32, or 14%, to trade at Rs 14.25. The total volume of shares traded was 5,204,584 at the BSE (1.27 p.m., Monday).