Diversified infrastructure group Jaiprakash Associates plans to mop up Rs. 1,500 crore from the primary market by an initial share sale of its arm Jaypee Infratech.

“We are looking to raise Rs. 1,500 crore by offloading a five per cent stake in Jaypee Infratech,” Jaiprakash Associates Executive Chairman Manoj Gaur told reporters here.

However, the company is yet to finalise the price band for the initial public offer (IPO) of six crore equity shares.

“We are looking to complete the listing of Jaypee Infratech by the end of this fiscal,” Gaur added.

The board of JP Associates on Tuesday approved the sale of six crore shares, amounting to nearly five per cent of its holding in subsidiary Jaypee Infratech (JIL), which is constructing a 165-km Yamuna Expressway connecting Greater Noida and Agra.

Earlier in March 2008, ICICI Bank purchased a one per cent stake in JIL for Rs. 250 crore and also granted a long-term loan of Rs. 900 crore.

Jaypee Associates in its annual report said that it has pledged 28.95 crore shares of JIL and also executed a non disposal undertaking for a further 20.26 crore shares as collateral security for a Rs. 3,000 crore loan from ICICI Bank.

As on March 2009, the outstanding loan to JIL was Rs. 1,675 crore.

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