JP Associates on 'expressway"

Jaiprakash Associates has announced that it has submitted a proposal to the Supreme Court for selling off its 165 kms Yamuna Expressway.

The company in the middle of a storm, thanks to its home project subsidiary, Jaypee Infratech (JAL), to whom it needs to deposit Rs.2000 crore by 27th Oct to cover all its liabilities. Thus in a bid to raise money, the company stated that it has received an expression of interest (EoI) from a prospective buyer who was willing to pay Rs.2500 crore for the expressway, which can be brought in, if it receives the go-ahead from SC, within a month.

If one may recollect, JAL is one amongst RBI’s ‘dirty dozen’ after it defaulted on Rs526.11 crore of loans outstanding to IDBI Bank. 

The stock price has reacted positively to this news and it spurted up almost 4% to Rs.19.60 in the opening bell session. Its 52-week high is at Rs.30.40 and low at Rs.6.71.