Shares of Jaypee Infratech rallied over 4 per cent in Wednesday’s trade on reports that NBCC got approval from the NCLT on Tuesday to acquire the debt-laden firm through an insolvency process and complete around 20,000 pending flats over the next three and half years.
The scrip was up 4.42 per cent at Rs 1.18 on BSE.
In its hearing on Tuesday, the Principal bench of the National Company Law Tribunal (NCLT), headed by Acting President B S V Prakash Kumar, gave a go-ahead to the resolution plan of NBCC, PTI said.
In a significant decision that will help NBCC in faster completion of stuck projects of Jaypee Group, the tribunal ordered that the Rs 750 crore deposited by Jaypee Infratech’s parent firm Jaiprakash Associates Ltd (JAL) with the registry of the Supreme Court be a part of the resolution plan.
“Rs 750 crore would be treated as part of the plan,” the bench said in its oral order adding the resolution plan is approved with the modification.
The successful resolution of Jaypee Infratech would not only provide much-needed relief to thousands of distressed homebuyers but also go a long way in reviving the Indian real estate sector, especially the sluggish housing market of Delhi-NCR.
Jaypee Infratech has been undergoing the insolvency process since August 2017.
Source: The Economics Times