Jaiprakash Associates Limited has informed the Exchange about Corporate Insolvency Resolution Process-Disclosure under (i) Regulation 30 read with Schedule III, Part A,Para A, Clause 16 and other applicable Regulation of SEBI (ListingObligations and Disclosure Requirements) Regulations, 2015, asamended ( Listing Regulations ); and (ii) Regulation 3(2) of SEBI(Delisting of Equity Shares) Regulations, 2021, as amended
Awaiting price reaction for this filing.
The NCLT Allahabad Bench has approved the resolution plan submitted by Adani Enterprises Limited (AEL) for Jaiprakash Associates Limited (JAL), which was admitted to CIRP in June 2024 after ICICI Bank's petition. The Committee of Creditors had approved the plan with 93.81% voting share, and Adani emerged as the successful bidder. Under the approved plan, all existing shares of JAL will be cancelled for zero consideration, AEL will subscribe to fresh equity and own 100% of the company, and JAL's shares will be delisted from stock exchanges. The exit price for existing shareholders is NIL because the liquidation value is insufficient to fully pay even secured creditors. AEL will infuse up to INR 800 crore within 180 days for working capital and operations, while secured creditors will receive INR 6,005 crore upfront, INR 6,026.5 crore over two years, plus non-convertible debentures. JAL's consolidated net worth as of March 31, 2025 was negative at approximately INR 6,903 crore, and total admitted creditor claims stood at INR 57,498 crore.
This is effectively a total loss event for existing public shareholders, who will receive nothing as the company gets delisted and existing equity is extinguished. The stock will likely be removed from exchanges once the effective date (within 90 days of plan approval) is triggered, so shareholders should not expect any recovery or future upside from holding these shares.