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Shares of Jaiprakash Associates plunged as much as 12 per cent on Thursday as the Supreme Court on Wednesday had declined to allow Jaiprakash Associates Ltd to hive off the Yamuna Expressway project but gave it more time to deposit the stipulated Rs 2,000 crore to cover the liabilities of Jaypee Infratech Ltd’s homebuyers.
Following a negative open at Rs 19.30 against the previous close of Rs 20.20, the stock touched an intraday high of Rs 19.30 and a low of Rs 17.70 on the BSE.
The company's shares ended lower by 9.9 per cent at Rs 18.20 on the BSE. On the NSE, the stock plunged 9.9 per cent to Rs 18.20.
The apex court’s order comes on a plea filed by Jaiprakash Associates, the parent company of Jaypee Infratech, proposing the sale of the 165-kilometre expressway. This would allow the Manoj Gaur-led company to raise Rs 2,500 crore which will be used to deliver flats or refunds to homebuyers.
The Bench, comprising Chief Justice of India Dipak Misra, Justices AM Khanwilkar and DY Chandrachud, disposed of the application but gave the company time till November 5 to raise the amount versus an earlier deadline of October 27.
Jaypee Infratech has defaulted on Rs 526.11 crore of loans outstanding to IDBI Bank. It was among the 12 companies against whom the Reserve Bank of India, through a June 13 directive, had asked banks to initiate insolvency action.
Earlier this month, the embattled Jaypee group had informed the Supreme Court that it wants to “hive off” the multi-crore Yamuna Expressway in order to generate money.
Jaypee Associates told the apex court that it has an offer worth Rs. 2,500 crore and has sought permission to give the project to another party.
Jaypee Associates, the parent company of Jaypee Infratech, had earlier been asked by the apex court to deposit Rs. 2,000 crore with the Supreme Court registry by October 27 for paying troubled home buyers.
The court was hearing a plea by over 40 home buyers of Jaypee Wish Town project at Noida in Uttar Pradesh who have challenged certain provisions of the Insolvency and Bankruptcy Code, 2016.
The apex court had on September 11 revived the insolvency proceedings against Jaypee Infratech Ltd and given its management control to the Interim Resolution Professional (IRP), appointed by the National Company Law Tribunal, with immediate effect.
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