Grapevine has it that Noida-based infrastructure developer Jaiprakash Associates is considering a dilution of its equity to fund the initial expenses of the Rs 40,000-crore Ganga Expressway Project. If market sources are to be believed, the company is in talks with a handful of foreign investors.
However, company sources denied any such development. An email query to the company also elicited no response. Jaiprakash Associates had outbid Reliance Energy, Unitech India and Gammon India to bag the 1,047-km expressway project.
This is not the first time Jaiprakash Associates is offloading stake to fund a project. The company had raised Rs 1,150 crore by selling 1% stake to ICICI Bank. The dilution was effected to capitalise Jaypee Infratech, a subsidiary company formed to develop, construct and operate Taj Expressway, a 165-km, six-lane access controlled toll expressway between Noida and Agra in Uttar Pradesh. The stock has been under pressure ever since corporate governance issues cropped in February relating to its stake in a subsidiary company.
Source: Economic Times