Gautam Adani
The shares of Jayaprakash Associates Limited (Jal) saw a tremendous rise on Monday. The stock climbed about 5% to ₹ 3.22’s intra-day high and got an upper circuit. Investors’ eyes are on this stock because the company has made a big announcement. Actually, Jal has been put in the insolvency process due to heavy debt. Jal said that he has received five dialects with earnest amount for the acquisition of the company under the insolvency process.
What is the whole matter?
Jayaprakash Associates Limited (Jal) was recently put in the Corporate Insolvency Solution Process (CIRP). This decision was taken by the Allahabad bench of the National Company Law Tribunal (NCLT) on 3 June 2024. There is a huge debt on the company, due to which it has to go through this process. The creditors have claimed a total of Rs 57,185 crore. A group of creditors led by State Bank of India (SBI) have sold Jal’s debt to the National Asset Reconstruction Company Limited (NARCL), which is now at the forefront of the claimants.
Jal said in the information given to the stock market, under the bankruptcy process of the company, five bids have been found for the Samadhan Yojana. These dialects have been given to the professional along with the amount of money. However, the company did not say which companies have given these bids. If sources are to be believed, Adani Group’s Adani Enterprises, Anil Aggarwal’s Vedanta, Dalmia Bharat Cement, Jindal Power and PNC Infratech have made these bids. At the same time, JP Infratech’s dialect was rejected due to not fulfilling some criteria. JP Infratech was earlier bought by the security group.
Jal’s creditors held a meeting on Wednesday, in which the dialects of the interested sides were opened. The last date for submission of bid was June 24. The special thing is that in April 25 companies showed interest in buying Jal. Now the dialects of five companies have come out, which are making this deal more exciting. These dialects will now be evaluated by a committee of professionals and creditors.
What is Jal’s business?
The business of Jayaprakash Associates is spread in many areas. The company works in sectors like real estate, cement, hotel, engineering and construction. It has large projects in real estate, such as JP Greens in Greater Noida, part of JP Greens Vishtown in Noida and JP International Sports City near Jewar International Airport. Apart from this, the company has three commercial/industrial offices in Delhi-NCR. Jal has five properties in Delhi-NCR, Mussoorie and Agra in the hotel segment. The company has four factories in Madhya Pradesh and Uttar Pradesh in the sector of cement. Also, there are some limestone mines in Madhya Pradesh, which have been leased. However, currently these cement factories are closed.
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