JP Associates shares in focus as firm inks pact with ICICI Bank to reduce debt

Shareholders of Jaiprakash Associates Ltd can expect further surge in the stock after the firm announced on Tuesday that it has inked an agreement with ICICI Bank to reduce debt. 

Jaiprakash Associates said in a stock exchange filing that it "signed Settlement Agreement with ICICI Bank to reduce debt" and will transfer 18.93 crore shares to the lender. NCLT will hear the JP Associates' IBC case next on November 30.

"The value/consideration of the said shares shall be arrived on the basis of the closing price at National Stock Exchange of India Limited on the day prior to the day of actual transfer of shares to the demat account of the Lender," the firm added. 

The penny stock has turned into a multibagger by rallying 180.48% in the last six months. The crisis-hit Jaypee Group's flagship firm's net loss narrowed to Rs 207.55 crore in the second quarter ended on September 30, 2023, as against Rs 312.21 crore on a year-on-year (YoY) basis. However, the company's losses widened on a sequential basis.

JP Associates' revenue from operations rose 28.65% to Rs 1,213.61 crore in Q2 FY24 from Rs 943.34 crore in the year-ago period.

The firm recently said it has defaulted on loans worth Rs 4,258 crore, including principal and interest amount. As of October 2023, JP Associates defaulted on repayments for a principal amount of Rs 1,733 crore and interest of Rs 2,525 crore.