ICICI arm, Jaypee end $800 Mn deal
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ICICI arm, Jaypee end $800 Mn deal

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New Delhi: As a result of costly valuations and adverse market conditions, ICICI Venture and Jaypee Infratech have terminated talks with regard to the former's buying of around 10 to 15 percent stake for $800 million in the infrastructure company.

"ICICI Venture is not investing in Jaypee Infratech. We were looking at getting a strategic investor in the firm, but have put our plan on hold for now," Jaiprakash Associates (JAL) executive chairman Manoj Gaur said.

The plan envisaged investors acquiring 44 percent stake in Jaypee Infratech through allotment of new shares.

For now JAL plans to invest up to Rs 440 crore to acquire 44 crore equity shares of Rs 10 each at par. The additional shares are originally meant for strategic investors, Gaur said, adding, "Since the strategic investment has been put on hold, JAL has initiated action to subscribe to these shares."

JAL had floated Jaypee Infratech last year to execute the 165-km long Taj Expressway project linking Noida and Agra. Gaur estimates this project to be worth Rs 1 lakh crore.

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