Jaypee To Get Rs 1650 Cr Via IPO To Fund Yamuna Expressway Project (02-Mar-2010)
With a perspective to fund the Yamuna Expressway Project, Jaypee Infratech Ltd. (JIL) is eyeing to come-up with an Initial Public Offering (IPO) of Rs. 1,650 crore.
Mr. Rahul Kumar, CFO of Jaiprakash Associates said the six lane expressway project is estimated at a total cost of Rs. 9,700 crore, where Rs. 5,300 crore has already been spend by the company on this project and currently the company is eyeing to raise Rs. 1,650 crore through IPO to support the project further.
The six-lane expressway would connect Noida with Agra.
Mr. Kumar said apart from the constructing of this expressway, the company would also develop 5 townships on different locations along the road between the two cities.
Mr. Kumar also said the company has got the rights for levying toll tax for 36 years on the expressway and which is scheduled to complete by 2013, but seeing the pace at which the construction is going on, the expressway may be able to start commute by 2011.
The Yamuna Expressway Authority (YEA) has already acquired 95 % of the land for the project and will soon handover the rest to the company.
The company holds the concession from YEA to develop, operate, connecting Noida to Agra, and also provides for the right to develop 25 million sq. metres of land along the Yamuna Expressway at 5 location for residential, commercial, amusement, industrial, and institutional purposes.
The Jaypee Group has filed a draft red herring prospectus (DRHP) for an IPO of equity shares of Rs 10 each for cash at price book-building process and aggregating up to Rs. 16,500 millions fresh issue and an offer for sale of 60,000,000 equity shares by Jaypee Associates ltd.
The price band retail discount an the minimum bid lot will be decided by the company an the selling shareholder in consultation with the Book Running lead managers and advertised at least two working days prior to bid/ issue opening date.
The Jaypee Group is a diversified infrastructure conglomerate in India with interests in - civil engineering and construction, cement, power, real estate, expressways, hospitality, Golf courses and education (not-for-profit).
JIL is a part of the Jaypee Group, was incorporated on 5th April 2007 as a special purpose company to develop, operate and maintain the Yamuna Expressway in the state of Uttar Pradesh, connecting Noida and Agra. The Yamuna Expressway is a 165-kilometre access-controlled six-lane concrete pavement expressway along the Yamuna river, with the potential to be widened to an eight-lane expressway.
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