Jaypee Infra Insolvency: Lenders reject bid of Dosti-Suraksha

Stating that the bid offered by the JV between Dosti Realty and Suraksha Asset was too low for the assets of Jaypee Infratech, the committee of creditors (CoC) rejected the offer.

A joint venture company Lakshadweep, formed by Mumbai-based Dosti Realty and Sudhir Valia-led Suraksha Asset Reconstruction Company had offered Rs. 7,350 crore for the bankrupt company, said news reports. Earlier, Lakshadweep's bid was identified as H1 by the lenders, outbidding proposals made by Kotak-Cube JV, Adani Group and JSW Group.

According to market estimates, the company’s original value stands at around Rs. 17,000 while its liquidation value is around Rs. 12,000 to 14,000 crore, against this what Dosti-Suraksha was offering is around half the value of assets. Lakshadweep's offer was rejected by most of its lenders.

IDBI Bank which is the largest lender to Jaypee Infra with 44 per cent share of the outstanding debt of Rs. 9,919 crore voted against the proposal. Other financial institutions including LIC, Union Bank of India, Axis Bank, Syndicate Bank and Corporation Bank also voted against the proposal, while Bank of Maharashtra and J&K Bank voted for it and SBI abstained from voting.

At 10:44, the stock of Jaypee Infratech was at Rs. 5.90 per share, down by 4.99 per cent and struck at its lower circuit limit on Thursday. Meanwhile, Bank Nifty was trading at 26,206.35, up by 0.20 per cent, while BSE Bankex was at 29462.97, up by 31.32 points or 0.11 per cent. The benchmark indices were trading choppy with BSE Sensex was at 35,324.80, up by 0.02 per cent and Nifty50 was at 10,737.40, down by 4.30 points or 0.04 per cent.