Jaiprakash Associates Share Price

JP Associates overview

JP Associates journey

• 1979: JP Associates Private Limited forms.
• 1981: Begins a hotel business with the first hotel named ‘Siddharth’ in New Delhi.
• 1982: Hotel ‘Vasant Continental’ is established.
• 1986: The first unit of 1.5 MTPA Jaypee Rewa Plant is established in District Rewa, Madhya Pradesh. Jaiprakash Industries Limited (JIL) is formed by merging JP Associates Private Limited and Jaypee Rewa Cement Limited. Public issue of 2,25,00,000 JIL shares takes place at a share price of ₹10.
• 1987: The company is listed on the BSE.
• 1991: The second unit of 1.5 MTPA Jaypee Rewa Plant is commissioned in District Rewa, Madhya Pradesh.
• 1994: The company receives the National Safety Award by the Government of India, Ministry of Power for improvement in energy performance.
• 2002: JIL’s cement division is separated and merged with the company. The company name changes to Jaypee Cement Ltd.
• 2003: JIL and Jaypee Cement Ltd are amalgamated to form Jaiprakash Associates Ltd.
• 2004: Civil and hydro-mechanical operation of 300 MW Baspa-II hydroelectric project; construction of pressure shafts and underground powerhouse complex of the 1500 MW Nathpa Jhakri hydroelectric project; and EPC contract for 300 MW Chamera (stage II) hydroelectric project—all in the state of Himachal Pradesh—is now complete.
• 2006: A joint venture is undertaken with the Government of Madhya Pradesh to form a special purpose venture: Madhya Pradesh Jaypee Minerals Ltd. It is established at an investment of ₹400 crore for developing Amelia (North) Coal Block in Sidhi, Madhya Pradesh.
• 2007: Dul-Hasti hydroelectric project (390 MW) Jammu & Kashmir; Vishnuprayag hydroelectric project (400 MW) Uttarakhand; Tehri hydroelectric project (1000 MW) Uttarakhand; Sardar Sarovar hydroelectric project (1450 MW) Gujarat; and Tala hydroelectric project (1020 MW) Bhutan, are all completed with a total power generation capacity of 4260 MW.
• 2013: The real estate segment 'Jaypee Greens' receives the 'Best Developer of the Year' award at Estate Avenues. It received the 'Indian Realty Mogul' at Indian Realty Award and the 'Most Promising Brand' at the World Consulting and Research Corporation.
• 2021: Receives Certificate of Registration for Quality Management System. The certificate complies with ISO 9001:2015.

JP Associates - Initial Public Offer (IPO)

JP Associates products

• Engineering and construction: This segment handles civil engineering construction, EPC contracts and expressways.
• Cement: This division undertakes clinker and cement manufacturing and sales.
• Hotels and hospitality: These divisions are spread across hotels, golf courses, resorts and spa activities.
• Real estate: This segment is concerned with development and maintenance, as well as sports events.
• Power: This segment handles the production and sale of energy.
• Investment: This division looks after investments across subsidiaries, associates and others.
• The company also handles waste treatments, heavy engineering projects, etc.

JP Associates business highlights

JP Associates Performance Highlights

JP Associates management

• Chairman: Manoj Gaur
• Chief Executive Officer (CEO): Manoj Gaur
• Chief Finance Officer (CFO): Ashok Soni
• Investor Relations (Compliance Officer): Sandeep Sabharwal

Indian diversified infrastructure industry overview

Size of the Indian diversified infrastructure industry

• During FY2020-21, infrastructure operations accounted for 13% of ₹6,67,898 crore of total Foreign Direct Investment (FDI) inflows.
• India’s core infrastructure sector saw a growth of 5.8% in February 2022, compared to 3.3% in February 2021.
• Cement production grew by 5% during February 2022. The sector’s cumulative index grew by 22.4% from April to February (FY2021-22) over the corresponding period in the previous year.

Industry growth prospects

• As part of the National Infrastructure Pipeline (NIP), India is expected to invest around ₹1,14,38,000 crore on infrastructure projects during 2019-2023 for the country’s sustainable development.
• The Government has proposed an investment of ₹50,00,000 crore for railways projects from 2018-2030.
• Government initiatives in heavy infrastructure via NIP, power, railways, water supply, transport and urban infrastructure are the key drivers for the potential growth of the infrastructure sector in India. This is expected to increase the overall capital expenditure (Capex) at a CAGR of 11.4% during 2021-2026.

JP Associates growth prospects

• Sardar Sarovar Project (Gujarat)
• Alimineti Madhav Reddy Project (Telangana)
• Punatsangchhu-II Hydroelectric Project (Bhutan)
• Pakul Dul Hydroelectric Project (Jammu & Kashmir)
• Varanasi-Gorakhpur Road Project (Uttar Pradesh)

Risks and concerns

• Most infrastructure projects in India are government initiatives. So, a lot of regulatory compliances and bureaucracy are to be dealt with for large-scale infrastructure projects.
• The low level of private investment in infrastructure in India is a cause for concern.
• Delay in land acquisition, obtaining forest and environment clearances, project financing tie-ups and lack of infrastructure support and linkages result in project cost and time escalations. This may cause delays in project execution.
• The possible rise in energy costs may impact cement production.
• Rise in inflation, the ongoing Russia-Ukraine war and the economic slowdown in China are some key global situations that may affect the availability of raw materials. Such situations could impact project executions related to the diversified infrastructure industry in India.

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