The Jaypee Group divests non-core assets, including a cement unit, to reduce its debt load
The Jaypee Group divests non-core assets, including a cement unit, to reduce its debt load
Nigrie Cement Grinding Unit and other non-core assets of Jaiprakash Power Ventures have been approved for divestment.
Jaypee Group has approved divestment plans for Jaiprakash Power Ventures (JPVL) and Jaiprakash Associates (JAL) – both under its umbrella.
Unlike JPVL, the board of debt-ridden JAL has cleared divesting the company’s significant cement business while it approved the sale of the company’s Nigrie Cement Grinding Unit and other non-core assets.
Following up on our previous letter dated October 9, this letter informs you that in the Board of Directors meeting that took place today, the company’s Board of Directors decided to sell the company’s Nigrie Cement Grinding Unit as well as other non-core assets, according to a company filing with the stock exchange.
JAL said that in their meeting held today, the Board of Directors decided, among other things, to divest the company’s cement business to support the ongoing efforts of the company to reduce its debt.
The first quarter of FY23 saw JPVL’s net profit rise to Rs 241.93 crore. In the past fiscal, the company’s total income from operations was Rs 914.99 crore, almost double in the current fiscal.
The loss reported by JAL in the quarter that ended June 2022 was Rs 362.91 crore. While revenues from operations jumped to Rs 1,001.43 crore from Rs 979.71 crore a year ago, total income from operations climbed to Rs 1,001.43 crore.
Divestment plans were discussed by Jaypee Group firms
A board meeting has been scheduled for Jaiprakash Power Ventures to review its progress in reducing debt and to discuss plans for the “divestment of Nigrie Cement Grinding Unit”.
In an announcement, Jaypee Group-owned firms Jaiprakash Associates Ltd (JAL) and Jaiprakash Power Ventures Ltd (JPVL) will meet on October 10 to discuss company divestments.
According to a JAL regulatory filing, a Board of Directors meeting has been scheduled for 10th October 2022. The purpose of the meeting is to provide information about the recommendations of the Audit Committee and the progress of the company’s divestment efforts.”
The board of JPVL will meet this week, according to the company’s exchange filing, to examine debt reduction efforts and to explore selling the Nigrie Cement Grinding Unit.
Furthermore, both companies noted that, as set by the Securities and Exchange Board of India (SEBI), their trading window for the quarter ended September 30, 2022, is currently closed from October 1 through 48 hours after the announcement of the results. The company’s workers, directors, key managerial people, designated individuals, and immediate family members were prohibited from dealing in the company’s shares or securities during the aforementioned closed trading window period, according to the statement.
Notably, for the quarter ending in June 2022, JAL posted a net loss of Rs 362.91 crore. Though it had increased from Rs 979.71 crore in the same time last year to Rs 1,001.43 crore, the company’s overall operating income.
In Q1 FY23, JPVL stated a net profit of Rs 241.93 crore. When compared to the equivalent period of the previous fiscal, its overall operating revenue nearly quadrupled to Rs 1,820.37 crore from Rs 914.99 crore.
Against Jaiprakash Associates, SBI files an insolvency petition
SBI has asked the court to appoint interim insolvency specialist Bhuvan Madan as part of its motion.
Because construction company Jaiprakash Associates failed to make a loan payment of Rs 6,893 crore, the largest lender in the nation, State Bank of India (SBI), has filed bankruptcy proceedings against the company. On September 19, a petition was submitted to the National Company Law Tribunal’s Allahabad bench (NCLT). An examination of the petition has been done by Moneycontrol.
Bhuvan Madan has been suggested by SBI as the interim insolvency expert in its plea to the court. On February 28, Jaiprakash Associates fell behind on payments to lenders totalling Rs 2,897 crore. According to a notification provided to stock exchanges, the business owes lenders Rs 1,353 crore and has interest arrears of Rs 1,544 crore.
ICICI Bank, Axis Bank, IDBI Bank, Canara Bank, and Bank of Baroda are some of the financial institutions that lend money to Jaiprakash Associates, the group’s main firm. The obligations include term loans, fund-based working capital, non-fund-based working capital, and FCCB. There are around 32 banks in total that have exposure to Jaiprakash Associates.
A total of Rs 27,000 crore in debt is owed by the corporation to creditors. The primary lender, ICICI Bank, filed an insolvency suit against JP Associates before the NCLT’s Allahabad Bench in September 2018. Although the lenders have attempted to restructure the debt outside of IBC, they have not been successful.
JP Associate was included on the second list of insolvency accounts that the RBI sent to banks in 2017. The NCLT proceedings for Jaypee Infratech Ltd, the other group business, have already begun.
Supertech, a different real estate firm, just filed for bankruptcy. The developer from Delhi-NCR, which is currently working on several projects in the cities of Noida, Greater Noida, Gurugram, and Ghaziabad, entered insolvency after the Delhi bench of the NCLT granted the Union Bank of India’s petition for non-payment of debts totalling Rs 431,92,53,302 of the date the petition was filed.
More than 25,000 homeowners who had homes reserved with the developer for several years and were awaiting possession may be impacted by this decision. Supertech, on the other hand, said that the business had 38,041 clients, of whom 27,111 houses have been delivered. Hitesh Goel was chosen by the NCLT to serve as Supertech’s Insolvency Resolution Professional (IRP) under the Insolvency and Bankruptcy Code (IBC). On March 17, 2022, the tribunal deferred its decision in the matter after hearing from all parties and learning that the bank had rejected Supertech’s one-time settlement offer.
Edited by Prakriti Arora
