Jaypee's QIP , FOR FUNDS, WAS THE DEAL MADE....?????????

After Jaypee's QIP, Abu Dhabi firm pulls out of deal
BS Reporter  |  New Delhi  

July 25, 2014 Last Updated at 00:58 IST

In a setback to Jaypee Group's debt-reduction plan, Abu Dhabi National Energy Company, or TAQA, has pulled out of an agreement to acquire two hydropower plants of its subsidiary Jaiprakash Power Ventures valued at around Rs 9,689 crore.
Earlier this month, Jaiprakash Associates, the flagship company of Jaypee Group, had raised Rs 1,500 crore through qualified institutional placement (QIP) of shares. The issue was oversubscribed and the funds raised through it will be used to repay or prepay certain loans, besides making investments in subsidiaries and joint ventures of the company, primarily in the cement and fertilisers space.
In an announcement to BSE on Thursday, Jaiprakash Power Ventures said the company received a notice from TAQA India Power Ventures that the company was withdrawing from the acquisition agreement signed in March due to a change in its group's business strategy and priorities. "The withdrawal makes TAQA liable to payment of break fee in terms of the said acquisition agreement," the company said its stock exchange filing.

SWITCHING OFF

Rs 9,689 cr The amount Jaypee's deal with TAQA was expected to fetch Rs 1,500 cr The amount raised this month by Jaiprakash Associates, flagship company of Jaypee Group, through QIP of shares Rs 28,164 cr Jaiprakash Associates' standalone debt as on March 31, 2014 Plants in the deal Karcham Wangtoo (capacity of 1,000 Mw) and Baspa-II (capacity of 300 Mw)

TAQA had in March said that a consortium led by it had agreed to buy the two hydropower plants - Karcham and Baspa in Himachal Pradesh - from Jaiprakash Power Ventures.
Under the agreement, TAQA was to have a 51 per cent stake, while Canada's PSP Investments 39 per cent and IDFC Alternatives 10 per cent.
The shares of Jaiprakash Power Ventures on Thursday fell seven per cent on BSE to close at Rs 19.20 apiece.
Though the group has been selling assets to reduce high debt, the standalone debt of Jaiprakash Associates still stood at Rs 28,164 crore as on March 31. Its interest cost for 2013-14 almost doubled to Rs 6,094 crore from Rs 3,134 crore a year earlier.
Last month, the group informed investors it had broken loan agreements. "The principal amount due under which our company is not in compliance with all covenants and ratios is Rs 10,079 crore. This is 35.77 per cent of our total principal standalone debt amount of Rs 28,164 crore as on March 31," the company said in its filing with the stock exchanges. However, it added it was regular in repayment across its obligations.
The group raised Rs 15,869 crore via sale of some power and cement assets and land parcels. This will help reduce its debt by about Rs 8,030 crore.

http://www.business-standard.com/article/company/after-jaypee-s-qip-abu-dhabi-firm-pulls-out-of-deal-114072500163_1.html

THE NIFTY FUTURE OUT LOOK....

PHENOMENAL RISE&HIGHs but A Denial for NOW….

The Indian markets have performed stupendously, like a race against all ODDs and against all emerging markets. We are the best performing Indices YTD or for the quarter. The Rise is so phenomenal that no-body expected but few could CASH the opportunity. Now many new entrants are making inquiries and many more are looking as a decent opportunity to make HUGE money to meet their DREAMS.

The fact is that, since January-14, Nifty rose by 20%, Mid-Caps by 30% and Small caps by 55%, some Individual stocks rose by 400-700% from their LOWs. The hype generated now is due to change in the Government, a market friendly team at the top. But the fact is that No-body could SELL the National property via LIBERALIZATION for no reason, nor for a simple cause. The National growth based on immediate requirements and will be judged by prioritising/striking a right balance between “NECESSITY & COMMERCIALIZATION”. The Future is GOOD as huge investments will take place and the results will come in due course of time.

As far as the Stock Markets rise is concerned, a dead cheap stocks are at a historic low was one of the major reasons for FIIs relentless investments. The Global markets are also encouraging and FREE Supply/HIGH Liquidity is driving the markets for NOW. Very few are working on the REAL worth for the paper but relying on the PROJECTIONS. The Nifty is POISED for touching 9000+ as experts are working on the next 3-year EARNINGS and P/E that could safely take us above the above said number. I am not pessimistic but play a realistic role for valuing the Available Opportunity. The main reason for Nifty may seek SOUTHWARD JOURNEY because of looming DROUGHT, Poor Investments made by the CORPORATES in the Preceding/Previous 2-3 years, so NO earnings Surprise by the top companies.

So, the scenario is GLOOM in the Short-term, however the POLICY push can give some bounce but for the next ONE year will be very challenging. The Nifty stocks are moving up but the UN-Winding is a concern. The rise from here may not be that much sharp or serious, from here 2-Ups and 4-5 Downs. Because the FUTURE is promising, on any DEEP cut/ steep fall BULLs take charge to make a comeback to take away the Retail Investors most of the STOP-LOSSES.

THE BLOOM and GLOOM story…..THE MOMENTUM IS HIGH….

THE NIFTY MAY TOUCH 8785-8850 RANGE; BUT VERY LIKELY, IN THE SHORT-TERM LOW MAY  TOUCH 7000, NO SURPRISE EVEN IF IT TOUCHES 6600-6400 RANGE

THE BANK-NIFTY MAY TOUCH 20100-22000 RANGE; IN THE SHORT-TERM LOW MAY  TOUCH 12500-800, NO SURPRISE EVEN IF IT TOUCHES 10100-10300 RANGE

THE RELIANCE MAY TOUCH 1450-1550 RANGE;IN THE SHORT-TERM LOW MAY  TOUCH 801-811, NO SURPRISE EVEN IF IT TOUCHES 759-736 RANGE

THE ONGC MAY TOUCH 620-650 RANGE; IN THE SHORT-TERM LOW MAY  TOUCH 311-321, NO SURPRISE EVEN IF IT TOUCHES 270 RANGE

THE SBI MAY TOUCH 3850-3950 RANGE, IN THE SHORT-TERM LOW MAY  TOUCH 1920-1950, NO SURPRISE EVEN IF IT TOUCHES 1450-1430 RANGE

THE ICICI MAY TOUCH 2130-2080 RANGE; IN THE SHORT-TERM LOW MAY  TOUCH 1180-1220, NO SURPRISE EVEN IF IT TOUCHES 970-950 RANGE

THE RELCAPITAL MAY TOUCH 950-1050 RANGE;IN THE SHORT-TERM LOW MAY  TOUCH 440-415, NO SURPRISE EVEN IF IT TOUCHES 330 RANGE

THE RELINFRA MAY TOUCH 1080-1150 RANGE; IN THE SHORT-TERM LOW MAY  TOUCH 520-540, NO SURPRISE EVEN IF IT TOUCHES 440 RANGE

WE CAN EXTEND AND READ MORE NUMBERS… BUT THE DENIAL IS RIDING HIGH EVEN IN MY MIND…

PLS DON’T BUY NOW UNTIL NIFTY TOUCHES 7250-80 RANGE, BUT THE ACTUAL BUYING IN QUALITY STOCKS SHALL EMERGE FROM 7000 ONLY. THOSE WHO ARE COMPULSIVE, SHALL TAKE A STOPLOSS ROUTE RATHER THAN HOLDING FOR LONGER…THW WAIT MAY BE 3 YEARS…!!!!!!!!!!!!!!!!!!!!!!!!!!!!!