Meanwhile, the BSE Sensex was up 113.38 points, or 0.79%, to 14536.
On BSE, 49.61 lakh shares were traded in the counter. The scrip had an average daily volume of 51.08 lakh shares in the past one quarter.
The stock hit a high of Rs 93.80 and a low of Rs 88.55 so far during the day. The stock had hit a 52-week high of Rs 103.70 on 5 June 2009 and a 52-week low of Rs 22.65 on 27 October 2008.
The stock had outperformed the market over the past one month till 24 June 2009, soaring 61.57% as compared to the Sensex's 3.86% gain. It had also outperformed the market in the past one quarter, surging 212.07% as against the Sensex rise of 52.28%.
The mid-cap hydroelectric power project operator has an equity capital of Rs 491 crore. Face value per share is Rs 10.
The current price of Rs 92 discounts the company's year ended March 2009 EPS of Rs 2.91, by a PE multiple of 31.61.
The proposed move is reportedly aimed at helping Jaiprakash Power Venture raise funds though equity route. According to reports, Jaiprakash Power Venture is expected to be valued at around Rs 12,000 to Rs 14,000 crore and the merged entity will be valued over Rs 16,000 crore.
Post merger, the company is planning to do a private placement by divesting 15-20% stake for Rs 3,000-4,000 crore, reports added. Once listed on the stock exchange, it would facilitate the transaction as foreign investors prefer to invest in a listed entity as it gives them an exit route.
The board of Jaiprakash Associates and Jaiprakash Hydro Power had appointed a committee of directors to evaluate the merger. The company board is meeting on 3 July 2009, to take a final decision to this effect. The board of Jaiprakash Hydro Power will also consider various fund raising options in the same meeting.
Jaiprakash Associates holds 63.34% of stake in Jaiprakash Hydro-Power and a 84.28% stake in Jaiprakash Power Venture (as on 31 March 2008).
Jaiprakash Associates was trading 2.58% higher at Rs 218.90 on the BSE.
Jaiprakash Power Venture had originally planned to mop around Rs 4,000 crore through an initial public offer (IPO) in 2008, but due to poor market conditions, it did not enter the capital market.
Jaiprakash Power is setting up over half a dozen thermal and hydro power plants with a combined capacity of around 8,000 megawatts (MW) in various states. In addition, it has a 400 MW hydro power plant in Uttarakhand.
Jaiprakash Hydro-Power reported a net loss of Rs 25.52 crore in Q4 March 2009 as against a net profit of Rs 28.86 crore in Q4 March 2008. Sales rose 20.2% to Rs 54.34 crore in Q4 March 2009 over Q4 March 2008.
Jaiprakash Hydro Power (JHPL), a part of the Jaypee Group owns and operates the 300-megawatts (MW) Baspa-II Hydroelectric Project in Himachal Pradesh.