JP Associates to float IPO of Jaypee Infratech

JP Associates to float IPO of Jaypee Infratech
Diversified Infrastructure group Jaiprakash Associates is going for Initial Public Offering of its infrastructure arm by floating a big budget offer. The firm hopes to generate funds worth Rs 1,500 crore by selling 5 per cent stake in Jaypee Infratech. However, JP is yet to announce the price band for the offer of six crore equity shares.

Jaypee Infratech, having good presence in reality sector, is going to turn a major revenue generating source for the firm as it would add significant toll revenue from the operations of Yamuna Expressway, going to be operational from next year.

Manoj Gaur, the Executive Chairman of Jaiprakash Associates informed, "We are looking to raise Rs 1,500 crore by offloading five per cent stake in Jaypee Infratech." The firm, as per Mr. Gaur, is expected to get complete listed by the end of its current financial year.

The firm is also going to raise Rs 500 crore through private placement of unsecured rated commercial papers, raising a total amount to over Rs 1,200 crore through offering.

Shares of JP Associates declined 0.81 per cent over previous close in the recent trading at the Bombay Stock Exchange.