INDIA BUSINESS WORLD - March 16th - March 31st - 2008
ICICI IN RS 1KCR DEAL WITH JAYPEE INFRA
India’s largest private sector bank, ICICI Bank, has entered into a Rs 1,150-crore equity-cum-debt deal with Jaypee Infratech, which will build and operate the 165-km Taj Expressway linking Noida with Agra. ICICI Bank will pick 1% stake in Jaypee Infratech for Rs 250 crore, which values the company at Rs 25,000 crore. In addition, the bank will provide Rs 900 crore as longterm loan to the company.
Last year, the private equity arm of ICICI Bank had been in discussions with Jaypee Infratech to pick up a stake. A senior Jaypee official said negotiations did take place with ICICI Venture for a 1% direct stake and an additional 9% through convertible debentures. “However, once discussions broke down we were able to quickly enter into a deal with the parent company,” said the executive.
In addition to ICICI Bank’s 1% stake, a Jaypee employee trust holds 1% in Jaypee Infratech. The company plans to shortly place an additional 3% equity with other investors. The parent company, Jaiprakash Associates, will hold the remaining 95% for the moment. A source said the company will go public at an appropriate time.
Jaypee Infratech has the rights to develop 25 million sq metres at five or more locations along the Taj Expressway. The land could be used for commercial, amusement, industrial, institutional and residential purposes.
Meanwhile, Jaiprakash Associates signed the concession agreement with the UP government for the Rs 40,000-crore Ganga Expressway project and deposited Rs 1,491 crore as bank guarantee.
|
