NEW DELHI, May 19 (Reuters) - India’s Jaiprakash Power Ventures Ltd plans to raise up to 30 billion rupees ($508 million) in new debt and equity to fund future projects and pay down its debts, the company said on Monday, sending its shares up 30 percent.
In a statement filed with the stock exchange, Jaiprakash said it was seeking shareholder approval for the capital hike, which replaces an already approved 25 billion rupee plan.
Jaiprakash, a subsidiary of Jaiprakash Associates, is trying to pay down its debts to improve profitability. Manoj Gaur, executive chairman of the parent group, said in March the company planned to cut its 620 billion rupees of debt by 250 billion by March 2015, largely via asset sales.
Shares in Jaiprakash Power, which also reported a bigger net loss for the three months ended March 31 than a year earlier, closed up 29.2 percent, against a 1 percent rise in the broader market.
$1 = 59.0300 Indian Rupees Reporting by Tommy Wilkes; editing by Jane Baird