Jaypee to launch IPO
Bangalore: Jaypee Infratech, a fully-owned subsidiary of Jaiprakash Associates, is planning to enter the capital markets. According to sources, the company is expected to come out with an initial public offering (IPO), which will be a mix of offer for sale and fresh equity. It is likely to offer fresh 12 percent equity and five percent offer for sale from JP Associates.
Sources also said that the company would file the draft red herring prospectus (DRHP) in the next few days. JP Morgan, Enam Financial and DSP Merrill Lynch BoA are bankers to the issue. JP Associates holds 98 percent stake in Jaypee Infratech.
JP Associates in the board meeting approved to disinvest/offer for sale upon six crore equity shares out of 121.50 crore equity shares of Rs.10 each held by the company in Jaypee Infratech Ltd. The company is also planning to raise low cost funds to the extent of Rs.500 crore by way of private placement of unsecured rated commercial papers.
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