Jaypee Infratech, Jaiprakash Associates shares fall after SC's relief to homebuyers, lenders
Share price of Jaypee Infratech is trading at lower circuit and its parent company Jaiprakash Associates has tumbled by nearly 7%.
- Jaypee Infratech hits lower circuit, Jaiprakash Associate down 7%
- Jaypee Infratech saddled with Rs 8000 crore debt
- Jaiprakash Associate to pay Rs 2000 crore on October 27
Share price of Jaypee Infratech and its parent Jaiprakash Associates faced selling pressure after the Supreme Court provided relief to its lenders and homebuyers.
Jaypee Infratech stocks were trading at lower circuit of Rs 15.20 per piece and were down 5% on BSE.
Jaiprakash Associate tumbled nearly 7% since the start of Tuesday's trading session. At 1250 hours, the stock was trading at Rs 20.85 per piece down 4.58%.
On September 11, the apex court restored the National Company Law Tribunal (NCLT) insolvency proceedings against Jaypee Infratech that were stayed on September and also expedited the process.
The Supreme Court asked the NCLT appointed interim resolution professional (IRP) Anuj Jain to work an interim resolution to protect the interest of homebuyers and creditors of Jaypee Infratech within 45 days.
Jain was earlier given six-months time period to submit a plan for revival of the company.
Also, Jaiprakash Associates (the parent of defaulter) has been asked to deposit Rs 2,000 crore by October 27. The directors and promoters of the defaulting company are banned from travelling abroad without prior permission.
IDBI Bank, on September 4, filed a petition before the Supreme Court seeking modification in the stay order on NCLT's insolvency proceedings against Jaypee Infratech.
On September 04, SC provided relief to 32,000 home buyers by putting NCLT's insolvency proceeding on hold against Jaypee Infratech.
Jaypee Infratech has defaulted loan amount of Rs 526.11 crore against IDBI.
Jaypee Infratech is saddled with a total debt of almost Rs 8,000 crore - and is among the first list of 12 defaulters identified by the Reserve Bank of India in the month of June 2017 - to tackle banks gross NPA issues.