Jaiprakash Power Ventures announced the amalgamation of Jaypee Karcham Hydro Corporation and Bina Power Supply Company Ltd with itself. The amalgamation will be effective from April 1st 2010.

Following the amalgamation, JPVL as a standalone company will have a power portfolio of 4,250 MW, of which 2,200 MW will be operational within the 11th Five Year Plan period.

The shareholders of JKHCL will be allotted two shares of INR 10 each by JPVL, for 10 equity shares of INR 10 each, held in JKHCL. For BPSCL shareholders, two shares of INR 10 each will be allotted by JPVL for 13 shares of INR 10 each held in BPSCL. The new capital of JPVL post amalgamation would consist of 265.18 crore shares of INR 10 each.

The valuations were carried out adopting the price earnings capitalization value, net asset value and market value approach. JPVL holds 56.9% stake in JKHCL, which is setting up the 1,000 MW Karcham Wangtoo Hydro Electric project in Himachal Pradesh.

(Sourced from BL)