TAQA deal: Shares of Jaiprakash Power slump on plant sales

Written by fe Bureau | Mumbai | Updated: Mar 3 2014, 18:03pm hrs
Taqa dealJaiprakash Power Ventures shares had surged 12.2 per cent on Friday in anticipation of the TAQA group deal (AP)
Shares of Jaiprakash Power Ventures Ltd fell more than 17% intra-day on Monday on concerns that the company sold two hydroelectric power plants to Abu Dhabi National Energy-led consortium at lower valuations.

JP Morgan downgraded Jaiprakash Power Ventures to 'neutral' from 'overweight' and reduced its target price to Rs 19 from Rs 25 on Monday, saying the implied deal equity value of $616 million was 30% lower than expectations.

The scrip was trading down 13.10% at Rs 14.40 at 12.15pm on the BSE Sensex.