Jaypee Group, as part of its Rs 10,000 crore revival plan for "Jaypee promoter makes Rs 10,000 crore offer for Jaypee Infratech; highest bidder had offered Rs 7,350 crore" 'Jaypee Infratech', has decided to offer 2,000 equity shares of the company to anyone who'll buy flats in its townships for free. The latest proposal comes after Jaypee Group promoter Manoj Gaur offered to retain control over Jaypee Infratech last week. Gaur's revival plan includes cash, land parcels, and equity to lenders through instruments, which could cover JIL's outstanding debt of Rs 9,800 crore. This resolution plan is over 25 per cent higher than bid made by Lakshadeep Pvt Ltd under the insolvency proceedings.
About 4.5 crore shares are estimated to be offered at nil consideration under the fresh proposal. Apart from paying the penalty to home buyers as per the agreement and new realty law RERA, the group also proposed to bear 50 per cent of stamp duty on behalf of the home buyers on first registration. The company is also determined to deliver all apartments in the next 42 months.
On April 15, Lakshadeep had emerged as the front-runner to acquire Jaypee Infratech with a bid of around Rs 7,350 crore. This offer, however, was way lower than what Jaypee Infratech proposed to lenders in March 2017 to pay off debt. Lakshadeep, a joint venture between Sudhir Valia-led Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty, offered Rs 1,200 crore in cash to the banks, Rs 4,000 crore of land parcel, the rest in form of long-term non-convertible debentures, and a small equity stake to lenders.
On March 2017, much before the real estate company was referred to NCLT, Jaypee Infratech had proposed to the joint lenders forum chaired by MDs of IDBI Bank and IIFCL to pay off Rs 8,500 crore of debt including interest after the company figured in the Reserve Bank of India's list of 12 big corporate defaulters, which was referred to the NCLT for insolvency proceedings.
The Jaypee Group has already submitted Rs 750 crore in the court registry of the Supreme Court to protect the interest of homebuyers. The Jaypee group started the development of 32,000 flats and plots in Noida township Wish Town, the bulk of which was to be built by Jaypee Infratech but it has only delivered 9,500 apartments so far. Though the company will require around Rs 2,500 crore more to construct these flats after Rs 4,000 crore receivables from customers, it boasts assets worth about Rs 24,000 crore, including land parcels, Yamuna Expressway and a hospital that can be monetised to protect the interest of creditors, home buyers as well as shareholders.
With PTI inputs