01st:April:2004
Jaiprakash Associates Limited, the flagship company of Jaypee Group, offering 180 million shares out of its holding in Jaiprakash Hydro-Power, through Offer for Sale.

Mumbai, February 7, 2005: Jaiprakash Hydro-Power Limited (JHPL), a wholly owned subsidiary of Jaiprakash Associates Limited, has filed its draft Red Herring Prospectus with SEBI today for the IPO of 180 million equity shares of Rs.10 each through Offer for Sale by Jaiprakash Associates Limited (JAL), the Selling Shareholder.

IPO will be made through book building process. The Offer would constitute 36.66% of the fully diluted paid-up capital of JHPL. UTI Bank Limited, JM Morgan Stanley Private Limited and ICICI Securities Limited are acting as Book Running Lead Managers and Allianz Securities Limited is acting as Lead Managers to the Issue. The Offer for Sale is likely to open during the third week of March 2005.

JHPL is part of the Jaypee group which is a well diversified infrastructural industrial group engaged in construction of river valley/hydro power projects, manufacture and marketing of cement of 7.0 million tonne per annum, hydro power generation and hospitality business with turnover of over Rs. 30,000 million. Jaiprakash Associates Limited, is the flagship company of the Jaypee group, and has over four decades of experience in execution of river valley/hydro power projects including undertaking EPC and turnkey contracts.

JHPL operates a private sector run-of-the-river, environment friendly hydro-electric Power Plant on BOO basis, with capacity of 300 MW designed to produce electrical energy estimated at 1,213.18 MU annually. JHPL has a PPA with HPSEB for a period of 40 years extendable by another 20 years with assured off-take and 16% return on equity plus incentive. The Power Plant, which is the largest hydroelectric plant commissioned in the private sector in India consists of three units of 100 MW each, has been set up at a cost of Rs.16,247 million commenced full commercial operation with effect from June 8, 2003.

The Electricity Act, 2003 ushers in comprehensive reforms in all segments of power sector – generation, transmission and distribution and provides opportunities for growth in the power sector. The renewed thrust on private sector participation in the power sector by the Government of India opens up new avenues for growth for JHPL. Himachal Pradesh is endowed with huge hydro power potential. JHPL being a pioneer in Himachal Pradesh in private hydro power generation, is expected to leverage its own and the groups capabilities for enlarging its footprints in all related fields of generation, transmission and distribution.