The move comes as Jaiprakash Associates, which holds a majority stake, has been virtually ruled out of the race to stay in control of the company facing insolvency proceedings. Jaypee Infratech is yet to deliver around 25,000 flats in Noida and also manages the Taj Expressway that connects the Delhi suburb with Agra.
JSW had earlier submitted a joint proposal with Jaiprakash Associates and was in talks to acquire around 30% stake. Sources told TOI that the fresh offer is on a standalone basis and makes the company one of the top bidders for the 12 high-profile companies facing action under the Insolvency and Bankruptcy Code (IBC). The Sajjan Jindal Group is eyeing Bhushan Steel and Monnet Ispat among companies on the block as part of the insolvency crackdown ordered by the Reserve Bank of India. The interest from three big players will offer comfort to Jaypee Infratech lenders.
The Ordinance promulgated last week was seen to result in less aggressive bidding in Jaypee after promoters of companies that have been nonperforming assets (NPAs) for over a year were made ineligible to submit bids under the 180-day resolution process.
The insolvency professional is looking at investors to raise Rs 2,000 crore for completion of the flats and villas. At the last meeting of the committee of creditors there was also a proposal for lenders to pump in Rs 500 crore to resume construction but a decision was deferred with the banks eyeing funds from the new investors.
Several prominent players such as Tata Realty, L&T Infra, Anil Agarwal’s Vedanta Group, Lodha, IDFC and the government-promoted National Infrastructure Investment Fund (NIIF) had responded to the insolvency professional’s notice seeking interest from potential investors. While several of the companies are looking at all the assets of Jaypee Infratech, there are some which are interested either in the real estate project or the Taj Expressway. For long, it had been speculated that ..