Meanwhile, the S&P BSE Sensex was down 171.20 points or 0.58% at 28,830.17.

On the BSE, 9.82 lakh shares of Jaiprakash Power Ventures exchanged hands so far compared with average daily volume of 18.77 lakh shares in the past one quarter. The stock had hit a high of Rs 6.05 and a low of Rs 5.80 so far during the day. The stock had hit a 52-week high of Rs 6.96 on 26 July 2016. The stock had hit a record low of Rs 3.60 on 16 December 2016.

The stock had underperformed the market over the past one month till 7 March 2017, falling 4.64% compared with 2.34% gains in the Sensex. The scrip had, however, outperformed the market in past one quarter, gaining 40.24% as against Sensex's 10.53% gains.

The mid-cap company has equity capital of Rs 5996 crore. Face value per share is Rs 10.

Reports suggested that the discussions are in initial stages and there is no certainty that a transaction will take place. A deal, if it happens, could close at an equity value of Rs 4500-5000 crore, report added.

The transaction will mark Brookfield's first investment in India's power sector. Jaiprakash Power Ventures' major lenders such as ICICI Bank, IDBI Bank and Punjab National Bank took control after the firm failed to repay loans on time.

On 20 February 2017, Jaiprakash Power Ventures allotted 305.8 crore shares to its 23 lenders as part of a debt restructuring scheme. Subsequent to the allotment of the shares, the lenders would collectively hold 51% of the post issue equity share capital and the outstanding loan amount of the company would stand reduced by Rs 3058 crore. The company as well as its subsidiaries shall cease to be subsidiaries of Jaiprakash Associates.

The Jaypee group has been trying to sell assets, including core ones, in the past two years after intense pressure from lenders. In July last year, the group sold its cement business to Aditya Birla Group firm UltraTech Cements for Rs 19500 crore. JP's power portfolio of 4,000 megawatts includes one hydro power plant and two thermal units.

Toronto-based Brookfield is the world's second-biggest manager of alternative assets such as real estate and private equity.

Jaiprakash Power Ventures reported net loss of Rs 172.96 crore in Q3 December 2016 compared with net loss of Rs 115.81 crore in Q3 December 2015. Net sales fell 16.2% to Rs 693.10 crore in Q3 December 2016 over Q3 December 2015.

Jaiprakash Power Ventures is a power company and a part of Infrastructure conglomerate - Jaypee Group. The company plans, develops, implements and operates power projects in India.