After JP Associates conference call, we were trying to figure out who is walking away with the remaining 45% of the newly formed entity JP Infra. Management has responded in e-mail but is still shady about the 45% which may goto management-politicians backing the deal. Welcome to Business India, Land of Shady deals 🙂
Here is the e-mail from the management.
In the past few hours we have received numerous enquiries from analysts and the investment community regarding JAL’ s shareholding in its SPV for the Taj Expressway project namely Jaypee Infratech Ltd.(JIL)
JIL was and remains to be a 100% subsidiary of the group. The authorised share capital of JIL was increased from Rs 200 crores to Rs1000 crores to meet its capital requirements, JAL subscribed to an additional 35 crore shares at Rs 10 each which represented 55% of the new authorised capital.
It is the same case like Anil Dhirubhai Ambani’s allotment to AAA ventures in Reliance Power IPO scam.