CoC nods for NBCC bid; Jaypee stocks jumps over 9 per cent

The Committee of Creditors (CoC) of Jaypee Infratech approved the bid of National Buildings Construction Corporation (NBCC) to acquire assets of this debt-laden company under insolvency process. Post this move, the stocks of Jaypee jumped over 9 per cent on Wednesday.

The company had got 97.36 per cent votes in the bidding process in the favour of state-owned NBCC’s offer. Initiated on the direction of Supreme Court, this was the third bidding process which started on December 10 and was voted by 22,000 homebuyers and lenders, including IDBI bank.

The company went into insolvency process in August 2017 after the National Company Law Tribunal (NCLT) admitted an application by an IDBI Bank-led consortium. However, as per the bid, to settle an outstanding claim of nearly Rs 9,800 crore to bankers, NBCC offered 1,426 acre land worth Rs 5,000 crore. Apart from that, it also offered 75 per cent of 858 acre land, which has been pledged by promoter Jaiprakash Associates Ltd and now claimed by Jaypee Infratech.  

The shares of Jaypee Infratech were trading 9.26 per cent, higher at Rs 1.77 apiece on the BSE, while on the NSE; the stock rallied 6.06 per cent to Rs 1.75. Meanwhile, the shares of NBCC also rose 0.5 per cent to Rs 35.55 on the BSE and NSE.