Jaiprakash Power raises $175 million from QIP

The Indian power company makes use of a new rule allowing it to price the deal at a 5% discount to the floor price, and increases the deal size due to strong demand.
<div style="text-align: left;">
Jaiprakash Power operates three hydropower plants and has several other hydro and thermal power plants under development (AFP)</div>
<div style="text-align: left;"> Jaiprakash Power operates three hydropower plants and has several other hydro and thermal power plants under development (AFP)</div>

Jaiprakash Power Ventures, an Indian power producer, has raised Rs9.5 billion $175 million from a qualified institutional placement QIP, after pricing the deal at a 5% discount to the floor price. The discount to the latest close was as wide as 8%.

The deal, which was launched on Tuesday evening and completed before the opening of Indian trading yesterday, attracted strong demand from regional and international long-only investors, as well as domestic mutual funds, a source said yesterday. This allowed the issuer to exercise the $50 million upsize option in full, increasing the deal size from the original $125 million.

Notably, the company, which owns and...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222