JSW buys Jaypee's hydro plants for Rs. 9,700 cr.

JSW Energy, controlled by billionaire Sajjan Jindal, has acquired two of Jaiprakash Power Ventures' hydro power plants, with a combined capacity of 1,391 MW, for Rs. 9,700 crore.

The board of directors of Jaiprakash Power Ventures, a fully owned subsidiary of the Jaypee group, has approved the 100 per cent transfer of businesses of its operating power plants -the 300-Mw Baspa-II hydroelectric plant (commissioned in 2003) and the 1,091-MW Karcham Wangtoo plant (commissioned in 2011), in Himachal Pradesh.

The price paid by JSW Energy, however, was higher than what analysts has estimated. 'We expected Rs. 9,000 crore for these assets. So, in our view, JSW Energy has overpaid about Rs. 700 crore,'said Bhargav Buddhadev, an analyst with domestic brokerage Ambit Capital.


BS