Suraksha Realty wins Jaypee Infratech bid; turns private
Real Estate

Suraksha Realty wins Jaypee Infratech bid; turns private

Suraksha Realty, the winning bidder for Jaypee Infratech, will pay an exit price to retail shareholders as the company delists from stock exchanges. Shareholders holding approximately 542 million equity units will be compensated at a value on par with the company's liquidation value.

"The board of directors has set June 21, 2024, as the record date for determining which shareholders will receive the exit price," stated a regulatory disclosure. The exit price, an aggregate amount of Rs 1.4 million, matches the liquidation value, according to the company.

This move is seen as a goodwill gesture, according to a lender. Ashish Pyasi, a partner at Aendri Legal, noted that shareholders are typically the last to receive payment under the insolvency code's waterfall mechanism, often receiving nothing if the debt is too high. He highlighted the uniqueness of Jaypee Infratech?s resolution plan, as retail shareholders are rarely offered exit prices in such cases.

At the time the resolution plan was approved, Jaypee Infratech had liabilities exceeding Rs 230.83 billion, including Rs 97.83 billion owed to secured financial creditors. Nipun Singhvi, managing partner at NSA Legal, mentioned that this payment to shareholders could set a precedent for future cases, as typically there isn?t enough payout to cover even the financial creditors.

Historically, shareholders have not been compensated in similar situations, such as with National Steel and Agro Industries (NSAIL), Videocon Industries, and Sintex Industries. This development coincides with an investor in Reliance Capital (RCAP) approaching the Bombay High Court to challenge the company's delisting following its resolution process closure.

Last year, the National Company Law Tribunal (NCLT) approved Suraksha Realty's resolution plan, which included offering around 2,500 acres to bankers and Rs 13 billion in non-convertible debentures. Suraksha Realty also committed to completing all pending flats for customers within four years. Jaypee Infra shares recently closed at Rs 1.27 each, with a market cap of Rs 1.76 billion.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

Suraksha Realty, the winning bidder for Jaypee Infratech, will pay an exit price to retail shareholders as the company delists from stock exchanges. Shareholders holding approximately 542 million equity units will be compensated at a value on par with the company's liquidation value. The board of directors has set June 21, 2024, as the record date for determining which shareholders will receive the exit price, stated a regulatory disclosure. The exit price, an aggregate amount of Rs 1.4 million, matches the liquidation value, according to the company. This move is seen as a goodwill gesture, according to a lender. Ashish Pyasi, a partner at Aendri Legal, noted that shareholders are typically the last to receive payment under the insolvency code's waterfall mechanism, often receiving nothing if the debt is too high. He highlighted the uniqueness of Jaypee Infratech?s resolution plan, as retail shareholders are rarely offered exit prices in such cases. At the time the resolution plan was approved, Jaypee Infratech had liabilities exceeding Rs 230.83 billion, including Rs 97.83 billion owed to secured financial creditors. Nipun Singhvi, managing partner at NSA Legal, mentioned that this payment to shareholders could set a precedent for future cases, as typically there isn?t enough payout to cover even the financial creditors. Historically, shareholders have not been compensated in similar situations, such as with National Steel and Agro Industries (NSAIL), Videocon Industries, and Sintex Industries. This development coincides with an investor in Reliance Capital (RCAP) approaching the Bombay High Court to challenge the company's delisting following its resolution process closure. Last year, the National Company Law Tribunal (NCLT) approved Suraksha Realty's resolution plan, which included offering around 2,500 acres to bankers and Rs 13 billion in non-convertible debentures. Suraksha Realty also committed to completing all pending flats for customers within four years. Jaypee Infra shares recently closed at Rs 1.27 each, with a market cap of Rs 1.76 billion.

Next Story
Real Estate

Colliers India Transacts 207,000 sq ft office space at Embassy TechVillage

Embassy Office Parks REIT, India’s first listed REIT and the largest office REIT in Asia by area, announced that it has signed an Agreement to Lease (‘ATL’) with global cyber security company Rubrik at Embassy TechVillage in Bengaluru.Colliers, a leading global diversified professional services company, specialising in commercial real estate services, engineering consultancy and investment management facilitated the transaction for Rubrik.Located on Bengaluru’s Outer Ring Road, Embassy TechVillage is one of Embassy REIT’s flagship office parks which offers world-class office spaces, ..

Next Story
Infrastructure Urban

Ensemble Infrastructure India Appoints Suman Saha as Director of Design

Ensemble Infrastructure India Ltd, a leading workplace design and build fit-out company, has appointed Suman Saha as its new Director of Design. With 25 years of experience in the industry, Suman is recognized for his innovative approach and excellence in design leadership.Working closely with the CEO, Suman’s appointment will enhance the company’s design communication across multiple touchpoints, ensuring smooth collaboration between clients, designers, and execution teams for superior project outcomes. Under his guidance, Ensemble will focus on creating workspaces and design labs that em..

Next Story
Products

Ribbon Vanity by Küche7: Fluid Design Meets Everyday Elegance

Küche7, pioneers in luxury stainless steel kitchens, have unveiled the Ribbon Vanity, a graceful creation that transforms bathroom spaces with its soft, flowing design and understated sophistication. Inspired by the fluid form of a ribbon, this vanity combines smooth finishes, clean lines, and gentle curves, offering a timeless aesthetic that seamlessly complements diverse interior styles.Available in a refined blush pink hue, the Ribbon Vanity effortlessly merges functionality with elegance. With thoughtfully designed storage options, it ensures that bathroom essentials are neatly organised ..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000