Jaypee Group to invest Rs 70,000 cr in Ganga Expressway in 5 years.
The company said that the 165-km Yamuna Expressway would be completed by 2011, about two years ahead of its scheduled time, and has so far invested Rs 6,250 crore in the project. The six-lane expressway, connecting Greater Noida to Agra, is being developed at a project cost of Rs 9,739 crore.
On funding of the project, Jaiprakash Associates Limited (JAL) Executive Chairman Manoj Gaur said: "We are coming out with a Rs 1,650-crore IPO. Of this Rs 1,500 crore will go to the expressway, while the rest will be utilised for various corporate purposes."
The IPO, which opens on April 29, 2010 and closes on May 4, will consist of 14-16 crore fresh issue of equity shares of Rs 10 each for cash at a price, including a share premium, and an offer for sale of 6 crore shares by promoters of JAL.
On a price band of Rs 102-117, the promoters' holding will come down to 83-84.5 per cent from the existing 99.1 per cent. The issue, which will close on May 4, will be a 100 per cent book- building process.
Meanwhile, the company also said that it would invest Rs 70,000 crore in the 1,047 km Ganga Expressway in the next five years. However, the company is yet to get various clearances for the project.
Talking to The Pioneer Gaur, said : "As Founder Chairman Jaiprakash Gaur said that the Ganga Expressway project is ready and all the alignment works have been approved.But as the matter is sub-judice right now I can't say anything but we are hoping to obtain all environmental clearances in the next two months."
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