The bidding process for Jaypee InfratechBSE 1.22 % has received bids from nearly 20 big names including JSW Group, Adani Group, Sudhir Valia-owned Suraksha Realty, Deutsche Bank and a Chinese company, according to two sources involved in the proceedings.
Monday was the last day of the bidding process that was initiated by the insolvency resolution professional (IRP). Jaiprakash Associates Ltd (JAL), the holding company of Jaypee Infratech (JIL), has also bid for Jaypee Infratech.
It is not certain if JAL’s bid will be accepted by the IRP. However, sources say in that case, JAL will challenge the rejection of its bid in the Supreme Court. After the sale of cement assets to UltraTech and sale of land parcels last year, JAL’s balance sheet has become stronger. Its debt has reduced to Rs 5,000 crore from Rs 28,000 crore at the end of FY17.
In August 2017, IDBI Bank, which had loaned Rs 4,000 crore to JIL, moved the National Company Law Tribunal (NCLT) to commence proceedings against the defaulting borrower under the Insolvency and Bankruptcy Code.
The subsidiary of JAL mainly owns 165-km Yamuna Expressway road projects and is into real estate development along the expressway. It owns five 1,235-acre land parcels totalling 6,175 acre. Strong toll revenue growth of 33% from the expressway and huge potential of real estate development in the land that company owns is the key reason for such high interest, say analysts.
