NBCC surges on likely resolution plan of Jaypee assets

The shares of NBCC (India) opened higher by 4.27 per cent in the opening trade on Monday after the company reported new developments regarding the long-pending Jaypee Infratech bankruptcy case.

The company has submitted its revised bid to acquire the bankruptcy-bound Jaypee Infratech, by offering lenders 1,426 acres of land instead of previously promised 950 acres. They are also providing half of the 3,000 benami flats to them. The company has offered 75 percent of 858 acres of land, which is expected to be transferred back to Jaypee Infratech from the parent company, Jaiprakash Associates. NBCC will infuse Rs. 120 crores as equity capital and transfer the Yamuna Expressway project, which connects Noida and Agra, to bankers with concessional right, adding that flats will be delivered to over 20,000 distressed home buyers over the next four years.

Jaiprakash Associate promoted, Jaypee Infratech, filed for bankruptcy in 2017. Its debt levels stood at more than Rs. 10,000 crores. The homebuyers seek NBCC to come up with a proper resolution plan for their relief. As per the latest update, it is also believed that NBCC is likely to take the responsibility of selling Rs. 1,750 crores worth flats.

At 11.00 am shares of NBCC traded at Rs. 38.50, higher by 2.94 per cent on BSE.