Jaiprakash Power Ventures Surges As Board Meets To Lower Debt

Jaiprakash Power Ventures Limited jumped as much as 15 per cent to hit intraday high of Rs 4.70 ahead of meeting of the company's board today to consider proposals to lower debt. 

Jaiprakash Power Ventures Limited informed BSE post market hours on Wednesday that "meeting of the board of directors of the company will be held on October 06, 2016, inter alia, to consider the recommendations of committee of directors (for restructuring) regarding proposals of restructuring including divestment of one or more units and review the progress made in the reduction of company's debt."

The move was cheered by market participants as Jaiprakash Power Ventures Limited has been working to lower its debt. Last month, the Competition Commission of India (CCI) approved Sajjan Jindal-promoted JSW Energy's purchase of the 500-MW Bina thermal power plant from Jaiprakash Power Ventures.

JSW Energy will buy 100 per cent stake in the special purpose vehicle (SPV) - Bina Power Supply Ltd (BPSL) - to which 500 MW power plant is to be transferred.

Jaiprakash Power Ventures Limited reported a standalone net loss of Rs 196.16 crore for the quarter ended June 30, 2016. It had reported a net profit of Rs 66.96 crore for the corresponding period a year ago, the company said in a filing to the BSE.

Shares of Jaiprakash Power Ventures ended 10.14 per cent higher at Rs 4.56.