Jaypee Infratech hit upper circuit on Tuesday on reports that group promoter Manoj Gaur on Monday made a Rs 10,000 crore offer to pay off bank loans and complete stuck housing projects.
The revival offer is part of plans to pull Jaypee Infratech out of the bankruptcy knot.
The stock rallied nearly 5 per cent to Rs 5.92 this morning whereas the BSE Sensex was up 48 points, or 0.13 per cent, at 35,255.
The turnaround details include paying part of Rs 9,800 crore debt, giving lenders an equity stake in the company and completing unfinished housing projects. According to a PTI report, the offer is over 25 per cent higher than the best bid made for Jaypee Infratech at the bankruptcy proceedings.
Gaur, the report added, who had previously sold interest in hydroelectric and cement projects to keep the real estate-to-hospital group alive, made a presentation before the committee of Japyee Infratech lenders.
The crisis-hit Jaypee group firm, Jaypee Infratech, is facing insolvency proceedings after it defaulted on loan repayments. The National Company Law Tribunal (NCLT) had last year admitted the application by an IDBI Bank-led consortium, seeking resolution for Jaypee Infratech debt under the Insolvency and Bankruptcy Code.
The NCLT had appointed Anuj Jain as Interim Resolution Professional (IRP) to manage the company’s business. The IRP had invited bids from investors interested in acquiring Jaypee Infratech and completing the real estate projects stuck in Noida and Greater Noida.