Latest news with #JPVL
Time of India
30-07-2025
- Business
- Time of India
Lenders plan to exit Rs 3,800-cr JPVL investment
New Delhi: Lenders to Jaiprakash Power Ventures (JPVL) are looking to sell their investment worth ₹3,800 crore in the listed power company, people aware of the discussions told ET. The lenders came to own the equity in lieu of the funds they had advanced during debt restructuring , The investment is in the form of compulsorily convertible preference shares (CCPS) that were allotted at the time of the company's debt restructuring in 2019. The CCPS were issued in lieu of downsizing the company's repayable debt. The plan was discussed at a meeting of JPVL's committee of creditors last weekend, said the people aware of the lenders' plans. JPVL has a market capitalisation of ₹14,686 crore. It is profitable unlike its parent Jaiprakash Associates (JAL), which is undergoing insolvency proceedings. The buyer of the CCPS will own a sizeable 25% stake in JPVL upon conversion of the CCPS into shares. The transaction will also trigger an open offer for a further 26% to public shareholders as per Sebi norms. Effectively, the buyer could own up to 51% of the company. ICICI Bank leads the creditor group. The lenders have decided to approach 10-12 large power generation companies to assess their interest in purchasing the instruments, according to sources. The plan could face setbacks if bidders don't show interest. JPVL's shares surged 5% on Tuesday hitting the upper circuit and closed at ₹21 .43 apiece on the national stock exchange. ICICI Bank did not respond to ET's queries on the matter. JAL only has a 24% ownership in JPVL. If the CCPS changes hands then the control of the company will pass on to a new set of shareholders leaving JAL as a passive investor. Lenders have no interest in holding a stake in the company or getting involved operationally. JPVL has operational thermal and hydro power plants with 2.2 gigawatts of electricity generation capacity.
Time of India
29-07-2025
- Business
- Time of India
Lenders plan to exit Rs 3,800-cr JPVL investment
New Delhi: Lenders to Jaiprakash Power Ventures (JPVL) are looking to sell their investment worth ₹3,800 crore in the listed power company, people aware of the discussions told ET. The lenders came to own the equity in lieu of the funds they had advanced during debt restructuring , The investment is in the form of compulsorily convertible preference shares (CCPS) that were allotted at the time of the company's debt restructuring in 2019. The CCPS were issued in lieu of downsizing the company's repayable debt. Explore courses from Top Institutes in Please select course: Select a Course Category Others MBA Finance PGDM Data Analytics Leadership Data Science Public Policy CXO Product Management MCA Cybersecurity Healthcare healthcare Data Science Degree Project Management Digital Marketing others Management Design Thinking Operations Management Artificial Intelligence Technology Skills you'll gain: Duration: 9 months IIM Lucknow SEPO - IIML CHRO India Starts on undefined Get Details Skills you'll gain: Duration: 28 Weeks MICA CERT-MICA SBMPR Async India Starts on undefined Get Details Skills you'll gain: Duration: 7 Months S P Jain Institute of Management and Research CERT-SPJIMR Exec Cert Prog in AI for Biz India Starts on undefined Get Details Skills you'll gain: Duration: 16 Weeks Indian School of Business CERT-ISB Transforming HR with Analytics & AI India Starts on undefined Get Details The plan was discussed at a meeting of JPVL's committee of creditors last weekend, said the people aware of the lenders' plans. JPVL has a market capitalisation of ₹14,686 crore. It is profitable unlike its parent Jaiprakash Associates (JAL), which is undergoing insolvency proceedings. The buyer of the CCPS will own a sizeable 25% stake in JPVL upon conversion of the CCPS into shares. The transaction will also trigger an open offer for a further 26% to public shareholders as per Sebi norms. Effectively, the buyer could own up to 51% of the company. Live Events ICICI Bank leads the creditor group. The lenders have decided to approach 10-12 large power generation companies to assess their interest in purchasing the instruments, according to sources. The plan could face setbacks if bidders don't show interest. JPVL's shares surged 5% on Tuesday hitting the upper circuit and closed at ₹21 .43 apiece on the national stock exchange. ICICI Bank did not respond to ET's queries on the matter. JAL only has a 24% ownership in JPVL. If the CCPS changes hands then the control of the company will pass on to a new set of shareholders leaving JAL as a passive investor. Lenders have no interest in holding a stake in the company or getting involved operationally. JPVL has operational thermal and hydro power plants with 2.2 gigawatts of electricity generation capacity.
Time of India
11-06-2025
- Business
- Time of India
Uncertainty over strategy of JPVL lenders clouds Jaypee Associates' debt resolution
Uncertainty around the future strategy of lenders to Jaiprakash Power Ventures Ltd (JPVL) could prove a hurdle in the corporate debt resolution of Jaiprakash Associates Ltd (JAL), the holding company of the Jaypee Group, people familiar with the matter said. JPVL - a listed associate of JAL with a market capitalisation of over ₹12,000 crore - is the most valuable asset in JAL's portfolio that also includes real estate, cement and fertiliser plants. As part of a debt restructuring, JPVL issued compulsory convertible preference shares (CCPS) worth ₹3,800 crore to its lenders in 2019. Upon their conversion into shares, the lenders could emerge substantial shareholders of JPVL. JAL only has a 24% ownership in JPVL as of March end, and 79.2% of promoter shares were pledged as collateral for loans. Bidders of JAL - including some of the largest corporate names - are unclear if and when banks plan to exercise their right to convert the CCPS into shares, people cited above said. The debt restructuring agreement left the timeline for conversion of the CCPS into shares open-ended. They can be converted into shares anytime "after 20 years or earlier," according to the documents. The potential bidders are now seeking clarity from lenders on their conversion plans, arguing that this information is crucial to calculate the value of the holding company when bidding, the sources said. Government-backed National Asset Reconstruction Company Ltd (NARCL), to whom the JAL's lenders have assigned their debts, did not respond to ET's queries until press time Tuesday. Twenty-five entities including Adani Enterprises , Vedanta , GMR, Dalmia Cement Bharat, Naveen Jindal and BC Jindal group companies, Suraksha Realty, and Kotak Alternate Assets have shown interest in bidding for Jaiprakash Associates. "As the public shareholding of Jaiprakash Power Ventures Ltd is very high, the conversion of CCPS could further dilute the holding company's stake in JPVL," said Drushti Desai, partner at chartered accountancy firm Bansi S Mehta & Co.
