Jaypee Infratech Jumps 5% on Getting Fresh Bid From Adani Group
Jaypee Infratech, a subsidiary of Jaypee group’s flagship firm Jaiprakash Associates, went into insolvency process in August 2017 after the NCLT admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.
Representative image (Reuters)
Jaypee Infratech Ltd shares jumped nearly 5% in intraday trade on Wednesday after Adani Group submitted a non-binding bid for the company.
Media reports suggested that Adani Group’s offer for Jaypee Infratech includes an upfront payment of Rs 500 crore and infusion of Rs 1,700 crore to complete projects for home buyers. The offer also includes Rs 23 crore payments to unsecured lenders and 1000 acres of land transfer to secured financial creditors.
The bid by Gautam Adani-led group is much higher than the recent offer made by NBCC, and also comes free of any conditions.
NBCC had proposed an infusion of Rs 200 crore equity capital, transfer of 950 acres of land worth Rs 5,000 crore as well as Yamuna Expressway to banks, and completion of flats construction by July 2023 in order to settle an outstanding claim of Rs 23,723 crore of financial creditors.
However, it is yet to be known if Adani group's offer will be considered by the Committee of Creditors (CoC) as the group had not participated in the official bidding process. The CoC is set to begin voting on NBCC's resolution plan for the company on Friday.
Meanwhile, debt-ridden Jaypee Infratech on Monday reported a consolidated net loss of Rs 1,402.16 crore for 2018-19. Total income rose to Rs 1,613.32 crore during the year compared with Rs 207.22 crore in the previous year.
Jaypee Infratech, which is a subsidiary of Jaypee group’s flagship firm Jaiprakash Associates, went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium seeking revival of the realty firm.
Shares of Jaypee Infratech were trading at Rs 1.85, up 2.8%, at 11:42 am on Wednesday.
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