Jaiprakash Associates has entered right into a settlement pact with ICICI Financial institution, whereby the corporate, together with its trusts, can be transferring greater than 18.9 crore shares to the non-public lender, a regulatory submitting acknowledged on November 14.
The settlement is a part of the efforts being undertaken by the flagship agency of crisis-hit Jaypee Group to scale back its debt burden.
“With a view to offer thrust to the continued efforts of the corporate to scale back its debt, the corporate, together with trusts holding 18,93,16,992 fairness shares of the corporate have entered right into a Settlement Settlement with ICICI Financial institution (lender) to switch the mentioned shares to lender,” the change submitting mentioned.
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The worth at which the shares can be transferred was not disclosed, as Jaiprakash Associates famous that it will be primarily based on the buying and selling worth prevailing on the Nationwide Inventory Trade (NSE) on the day previous to the switch of stake.
“The worth/consideration of the mentioned shares shall be arrived on the idea of the closing worth at Nationwide Inventory Trade of India Restricted on the day previous to the day of precise switch of shares to the demat account of the lender,” it acknowledged.
Within the buying and selling session on November 13, Jaiprakash Associates’ scrip settled at ₹19.35 apiece on the BSE, up 6.55 p.c as in opposition to the day before today’s shut.
The announcement of pact with ICICI Financial institution comes amid the continued Insolvency and Chapter Code (IBC) proceedings in opposition to the corporate. The Nationwide Firm Legislation Tribunal (NCLT) is scheduled to listen to the case subsequent on November 30.
JP Associates had on October 31 knowledgeable the inventory exchanges that it defaulted on loans price ₹4,258 crore. This features a principal quantity of ₹1,733 crore and curiosity of ₹2,525 crore.
“The full borrowing (together with curiosity) of the corporate is ₹29,272 crore, repayable by 2037, in opposition to which solely ₹4,258 crore is overdue as on October 31, 2023,” it mentioned.
ICICI Financial institution, which is among the many lenders which have issued loans to Jaiprakash Associates, had filed an insolvency petition in opposition to the corporate in September 2018.
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Up to date: 14 Nov 2023, 03:48 PM IST
Supply: Live Mint