You are here: Home » PTI Stories » National » News
Business Standard

IDBI Bank acquires 32.30 cr shares in JPVL

Press Trust of India  |  New Delhi 

Jaiprakash Power Ventures today said has acquired its 32.30 crore under the strategic debt restructuring scheme by its lenders.

has acquired 32,30,00,000 from Jaiprakash Power Ventures in consideration of conversion of debt into equity under strategic debt restructuring, the company said in a filing.


According to the statement, taking into consideration the allotment, IDBI Bank's holding in the company stood at 5.39 per cent of the company's total 5,99,60,03,084 equity

Last month, had acquired JPVL's 81.44 crore under the strategic debt restructuring plan. The bank's equity holding in the company stood at 13.72 per cent after this

Before this acquisition, the held 79,61,535 or 0.13 per cent of the equity in the company.

Earlier in February, the company had alloted 305.80 crore equity to its lenders as part of debt restructuring scheme, which would reduce the debt by Rs 3,058 crore.

JPVL's equity share, which was 293,80,03,084 shares, has increased to 599,60,03,084 post this

Following the allotment, financial institutions will have 51 per cent equity share in the Jaypee group firm.

Stakeholders Relationship Committee of the company at its meeting held on February 18, 2017, alloted 305.80 crore equity of Rs 10 each at a price of Rs 10 to its 23 lenders.

The major lenders to the company are Bank, IDBI, Punjab National Bank, Central of India, SBI, United of India, Canara Bank, Oriental of Commerce, UCO Bank, IDFC, LIC, Syndicate Bank, Corporation Bank, Indian Overseas Bank, Allahabad Bank, and of India.

Owing to various factors such as lack of visibility of new power purchase agreement (PPA) for 1,320 MW Jaypee Nigrie Power Plant, delay in signing of PPA, low offtake by discoms, abnormal decline in merchant tariffs and lower generation of power, Jaypee Bina thermal power plant has adversely impacted operations of the company, leading to decline in operating profits and liquidity constraints, it had said earlier.

The company could not pay the outstanding dues to lenders in a timely manner due to these reasons.

The lenders had formed a joint lenders' forum (JLF) and formulated a corrective action plan (CAP) for the company in order to resolve the financial stress.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU