Lenders plan to exit Rs 3,800-cr JPVL investment
Jaiprakash Power Ventures
(JPVL) are looking to sell their investment worth ₹3,800 crore in the listed power company, people aware of the discussions told ET. The lenders came to own the equity in lieu of the funds they had advanced during
debt restructuring
,
The investment is in the form of compulsorily convertible preference shares (CCPS) that were allotted at the time of the company's debt restructuring in 2019. The CCPS were issued in lieu of downsizing the company's repayable debt.
The plan was discussed at a meeting of JPVL's committee of creditors last weekend, said the people aware of the lenders' plans.
JPVL has a market capitalisation of ₹14,686 crore. It is profitable unlike its parent
Jaiprakash Associates
(JAL), which is undergoing insolvency proceedings.
The buyer of the CCPS will own a sizeable 25% stake in JPVL upon conversion of the CCPS into shares. The transaction will also trigger an open offer for a further 26% to public shareholders as per Sebi norms. Effectively, the buyer could own up to 51% of the company.
ICICI Bank
leads the creditor group.
The lenders have decided to approach 10-12 large power generation companies to assess their interest in purchasing the instruments, according to sources.
The plan could face setbacks if bidders don't show interest.
JPVL's shares surged 5% on Tuesday hitting the upper circuit and closed at ₹21 .43 apiece on the national stock exchange.
ICICI Bank
did not respond to ET's queries on the matter.
JAL only has a 24% ownership in JPVL. If the CCPS changes hands then the control of the company will pass on to a new set of shareholders leaving JAL as a passive investor. Lenders have no interest in holding a stake in the company or getting involved operationally.
JPVL has operational thermal and hydro power plants with 2.2 gigawatts of electricity generation capacity.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
India.com
21 minutes ago
- India.com
SEBI Proposes Easier Norms For Resident Indian Participation In FPIs
New Delhi: The Securities Exchange Board of India has proposed easier norms for resident Indians and mutual funds to invest in foreign funds. The regulator proposed to enable retail schemes based in IFSCs in India with resident Indian non-individuals as sponsors or managers to register as FPIs. The investment limit is capped at 10 per cent of the targeted corpus, in line with IFSC rules, a release from SEBI said. The suggestion is to replace the sponsor and manager with a fund management entity or associate for IFSC FPIs. SEBI has also proposed allowing Indian mutual funds to invest in overseas funds with India exposure. These proposals aim to increase investment options for Indian investors to diversify their portfolios. If implemented, these reforms could bridge the gap between India's domestic savings pool and international opportunities. Currently, only certain institutional investors meeting SEBI's criteria can register as FPIs to invest in foreign securities. The proposed changes focus on retail-oriented investment schemes set up in IFS, which would allow a broader range of India-based entities to channel domestic capital into foreign assets through a regulated framework. At present, non-resident Indians (NRI), overseas citizens of India (OCI) or resident Indians are not eligible to register as FPIs. However, NRIs, OCIs or resident Indian individuals are permitted to be constituents of FPIs, subject to certain conditions in terms of limits on contribution and control of the FPIs. The Reserve Bank of India's liberalised remittance scheme permits individuals to remit up to Rs 2.5 lakh annually for overseas investments. Retail investors depend on indirect channels and FoF opportunities in global mutual funds for foreign market exposure. IFSC is a special economic zone (SEZ) acting as a global financial hub within India, allowing institutions to conduct international financial transactions and operations. The capital market regulator has sought public feedback on its proposals till August 29.
News18
31 minutes ago
- News18
Sebi scraps transaction charges for mutual fund distributors
Agency: PTI Last Updated: New Delhi, Aug 9 (PTI) Markets regulator Sebi has abolished transaction charges paid to mutual fund distributors, bringing an immediate end to the provision that allowed asset management companies (AMCs) to pay such charges for investments above a certain threshold. The regulator said the decision came after a public consultation was carried out in May 2023 and an industry consultation in June this year. Under the earlier framework, Sebi said distributors were eligible for such charges if they brought in a minimum subscription amount of Rs 10,000. '…Sebi Master Circular for Mutual Funds dated June 27, 2024, allows AMCs to pay to the distributor transaction charges, subject to a minimum subscription amount of Rs 10,000 brought in by such distributors," the regulator said in a circular on Friday. Based on the feedback, Sebi observed that distributors, as agents of AMCs, are entitled to be remunerated by the AMCs, the 'charges or commission, as prescribed under rules, shall be done away with". Accordingly, the master circular — which governed these charges — have been deleted. This will come into force with immediate effect, the regulator said. This change is expected to simplify the distributor compensation process while maintaining transparency in the mutual fund ecosystem. PTI HG TRB (This story has not been edited by News18 staff and is published from a syndicated news agency feed - PTI) view comments First Published: August 09, 2025, 17:15 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Time of India
an hour ago
- Time of India
Technocraft Ventures files IPO papers with Sebi, plans Rs 138 crore fundraise for working capital; strong wastewater project pipeline
Technocraft Ventures, a wastewater treatment solutions provider and public infrastructure development firm, has filed draft papers with markets regulator Sebi to launch an initial public offering (IPO). The IPO will comprise a fresh issue of up to 95.05 lakh equity shares and an offer for sale (OFS) of up to 23.76 lakh shares by promoter Kartikey Constructions, according to the draft red herring prospectus (DRHP) filed on Friday, PTI reported. Net proceeds of Rs 138 crore from the fresh issue will be used to fund working capital requirements, with the remaining amount allocated for general corporate purposes. Incorporated in 1998, Gautam Budha Nagar-based Technocraft Ventures executes turnkey engineering, procurement and construction contracts across wastewater treatment, public utility operations and maintenance, and electrical transmission and distribution projects. The company has completed assignments under flagship schemes like the Atal Mission for Rejuvenation and Urban Transformation, Namami Gange Programme, and Pradhan Mantri Gram Sadak Yojana, as well as projects backed by multilateral agencies such as the Asian Development Bank. As of June 30, 2025, the company's order book for ongoing projects stood at Rs 685.83 crore, including four joint venture projects worth Rs 383.86 crore. Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like When Knee Pain Hits, Start Eating These Foods, and Feel Your Pain Go Away (It's Genius) Click Here Undo by Taboola by Taboola Competitors include Denta Water, VA Tech Wabag, EMS Ltd, and Enviro Infra Engineers. In FY25, Technocraft Ventures reported revenue from operations of Rs 279.56 crore and a profit after tax of Rs 28.20 crore. Shares are proposed to be listed on both the BSE and NSE. Khambatta Securities is the sole book-running lead manager, while Bigshare Services will act as registrar to the issue. Stay informed with the latest business news, updates on bank holidays , public holidays , current gold rate and silver price .
