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Jaypee offers 2,000 shares for free to home buyers: All you need to know

Efforts are in place as part of its Rs 100 bn proposal to revive the bankruptcy-hit real estate firm

Press Trust of India  |  New Delhi 

Deposit money as directed, Tihar is not far, Supreme Court warns Jaypee
Jaypee Infratech

has offered 2,000 equity shares of for free to each home buyer as part of its Rs 100 billion proposal to revive the bankruptcy-hit real estate firm, sources said.

Earlier this week, promoter Manoj Gaur made an offer of over Rs 100 billion before the lenders of to protect the interest of all stakeholders including financial creditors, home buyers and minority shareholders.

Jaypee Infratech, a subsidiary of Jaypee group's flagship firm Jaiprakash Associates, had in 2007 started development of about 32,000 flats in Noida, of which it has delivered 9,500. It has applied for occupancy certificates to hand over 4,500 flats more.

According to sources, in its fresh proposal has offered 2,000 shares each to every home buyer on first registration. About 45 million shares are estimated to be offered at nil consideration.

That apart, the group proposed to bear 50 per cent of stamp duty on behalf of the home buyers on first registration, they said adding the company plans to deliver all apartments in the next 42 months.

Jaypee Infartech will also pay penalty to home buyers as per the agreement and new realty law RERA, sources said.

has already deposited Rs 7.5 billion with the Registry of the Supreme Court and the amount would be utilised for refund to home buyers.

Yesterday, lenders of rejected a Rs 73.5 billion bid by Lakshadweep, the highest bidder for the company, as they found it inadequate.

The decision was taken at a meeting of the Committee of Creditors (CoC) that was called to decide on the bid received from Lakshadweep, whose offer was ranked higher than the one presented by

Last year, the National Company Law Tribunal (NCLT) had admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech under the Insolvency and Bankruptcy Code.

The tribunal had appointed Anuj Jain as Interim Resolution Professional (IRP) to mange the company's business.

Later, Jain invited bids from investors interested in acquiring Jaypee Infratech and completing the stuck real estate projects in Noida and Greater Noida.

Consequently, Lakshadweep emerged as a front runner to acquire Jaypee Infratech with Rs 73.5 billion bid.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, May 10 2018. 16:39 IST