Jaypee group’s flagship company Jaiprakash Associates on Monday said its shareholders have approved the proposal to raise up to Rs2,000 crore through sale of securities. The special resolution was approved by the shareholders at the company’s annual general meeting held on 23 September.
Crisis-hit Jaiprakash Associates had sought shareholders nod to raise up to Rs2,000 crore through issue of securities via routes like qualified institutional placement (QIP). In a BSE filing, the company said the proposal was approved by the shareholders as over 85% of votes were polled in favour.
The amount would be used for capital expenditure, reduction of debt, general corporate purposes and for raising working capital requirement for real estate business and other businesses, the company had said in a notice to shareholders.
Jaiprakash Associates is a diversified infrastructure company and is engaged in segments as engineering, construction and real estate development, manufacture and marketing of cement, hospitality and sports management. It had said in the notice that it has taken various steps to reduce its debt, including sale of cement plants.
“The company is focusing on its core area of strength i.e. Engineering and Construction and is bidding for various construction projects. Further, steps are being taken to strengthen its marketing network, strategies for marketing its products in cement & real estate space,” the notice said.
Jaypee group firm Jaypee Infratech is facing huge protest from home buyers because of significant delays in delivery of projects and doubt over its financial health. The NCLT-appointed interim resolution professional (IRP) has taken over the management of Jaypee Infratech.
Source: Mint