JSW Energy, JP Power stocks rise on hydropower deal

The JSW Energy and Jaiprakash Power Ventures stocks rose on Monday after news came in that the former had signed a deal to buy two hydroelectric power projects of Jaiprakash Power Ventures in Himachal Pradesh.

At 1: 37 pm, the JSW Energy stock was trading 11.80 per cent higher at Rs 84.80. The Jaiprakash Power Ventures stock was trading 3.41 per cent higher at Rs 14.86

The BSE Sensex was trading 0.22 per cent lower at 27,984 points.

On Sunday, JSW Energy issued a statement saying it "has agreed to acquire from Jaiprakash Power Ventures and other shareholders 100-per cent stake in Himachal Baspa Power company for a base enterprise value of Rs 9,700 crore."

The acquisition will make JSW Energy the largest private sector hydropower generator in the country. After the acquisition, the aggregate installed power generation capacity of JSW Energy will go up to 4,531 MW.

The acquisition will yield immediate cash flow and is expected to enhance JSW Energy's consolidated profitability and returns and create significant synergies, the statement said.

Axis Capital and SBI Capital Markets acted as financial advisers. The Noida headquartered Jaypee Group was looking to sell the hydro projects to cut its nearly Rs 12,000-crore debt.