Jaiprakash Associates (JAL) is in the limelight today. This follows the Supreme Court directive, asking the company to deposit Rs 1,000 crore by June 15 to provide refunds to homebuyers of debt-ridden Jaypee Infratech.
SC stated that there will be a stay on liquidation proceedings against its subsidiary Jaypee Infratech subject to the deposit of the money and statutory proceedings will begin against the company if it fails to deposit this money as per the court’s directions.
The Court had asked Jaiprakash Associates to deposit Rs 2,000 crore, allowing the sum to be paid in installments. The company has deposited Rs 750 crore so far.
The SC also gave more time to seek fresh bids for the company that saw three bidders in race - Lakshadweep, the Adani group and Kotak Realty Fund-Cube Highways; ultimately there was no eventual winner. Later, only one bidder remained – the JV between Sudhir Valia-led Suraksha ARC and Mumbai’s Dosti Realty. They had made an offer for Rs.7000 crore but was rejected on grounds of it being too low. Corporate grapevine has it that the SC has asked Suraksha to deposit Rs.5000 crore if they wish to bid for Jaypee Infra.
Hopes are still alive that JAL will retain control over Jaypee Infratech and if that happens, it will be a game changer. A SC hearing on the same is scheduled for 5th July.
All this uncertainty has pulled down the stock price today; it is currently down around 2% at Rs.17.20. Its 52-week low is at Rs.9.15.