ICICI Bank acquires 81.44 cr shares in JPVL

Before the acquisition, the bank held 79,61,535 shares or 0.13% of equity in the company

Jaiprakash Power Ventures Ltd on Thursday said ICICI Bank has acquired its 81.44 crore shares under the strategic debt restructuring plan by its lenders.

"ICICI Bank Ltd has acquired 81,44,90,000 shares of Jaipraskash Power Ventures Ltd by conversion of debentures into equity," the company said in a BSE filing.

"Accordingly, at February 18, 2017, the total equity shareholding of the bank stands at 13.72 per cent (of the total share capital of the company)," it said.

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

It had last week alloted 305.80 crore equity shares to its lenders as part of debt restructuring scheme, which would reduce the debt of Rs 3,058 crore.

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

Following the allotment, financial institutions would 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 shares of Rs 10 each at a price of Rs 10 to its 23 lenders.

The major lenders to the company are ICICI Bank, IDBI, Punjab National Bank, Central Bank of India, SBI, United Bank of India, Canara Bank, Oriental Bank of Commerce, UCO Bank, IDFC, LIC, Syndicate Bank, Corporation Bank, Indian Overseas Bank, Allahabad Bank, Bank 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 off-take 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 overdues to lenders in a timely manner due to the aforesaid 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.