Jayaswal Neco is attracting lot of attention today. From its close of Rs.19.60, the stock opened at Rs.20.20 and rose to Rs.20.50, just a tad away from its 5% UC of the day at Rs.20.55.
The stock rose on news that Bank of America-backed Asset Care Reconstruction Enterprise Limited (ACRE) has picked up a 32% stake in the company.
The ARC is backed by other global distressed funds and investors like Davidson Kempner Capital Management, Oaktree Capital and Ares SSG.
This stake sale bodes well for the company, helping it restructure debt worth Rs.5661 crore, which is according to the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
This is the first case of Competition Commission of India’s (CCI’s) clearance for acquisition of more than 25% stake of a company by an asset reconstruction company on a pre-insolvency transaction.