ICICI Bank buys 814.4 million shares of Jaiprakash Power Ventures

ICICI Bank says it has acquired 814.4 million shares of Jaiprakash Power Ventures under the strategic debt restructuring (SDR) plan by its lenders


JPVL’s equity share capital, which was 293,80,03,084 shares, has increased to 599,60,03,084 shares post this acquisition. Photo: Mint
JPVL’s equity share capital, which was 293,80,03,084 shares, has increased to 599,60,03,084 shares post this acquisition. Photo: Mint

New Delhi: Jaiprakash Power Ventures Ltd (JVPL) on Thursday said ICICI Bank Ltd has acquired its 814.4 million shares under the strategic debt restructuring (SDR) plan by its lenders.

“ICICI Bank Ltd has acquired 81,44,90,000 shares of Jaiprakash Power Ventures Ltd by conversion of debentures into equity,” the company said in a BSE filing.

“Accordingly, at 18 February 2017, the total equity shareholding of the bank stands at 13.72% (of the total share capital of the company),” it said. Before this acquisition, the bank held 79,61,535 shares or 0.13% of the equity in the company, it said.

It had last week alloted 3058 million equity shares to its lenders as part of debt restructuring scheme, which would reduce the debt of Rs3,058 crore.

JPVL’s equity share capital, which was 293,80,03,084 shares, has increased to 599,60,03,084 shares post this acquisition. Following the allotment, financial institutions would have 51% equity share in the Jaypee Group firm.

Stakeholders relationship committee of the company at its meeting held on 18 February 2017, alloted 3058 million equity shares of Rs10 each at a price of Rs10 to its 23 lenders.

The major lenders to the company are ICICI Bank Ltd, IDBI, Punjab National Bank, Central Bank of India, State Bank of India, United Bank of India, Canara Bank Ltd, Oriental Bank of Commerce, UCO Bank, IDFC Ltd, Life Insurance Corp. of India (LIC), Syndicate Bank Ltd, Corporation Bank, Indian Overseas Bank, Allahabad Bank, Bank of India.

Owing to various factors such as lack of visibility of new power purchase agreement (PPA) for 1,320 megawatt (MW) Jaypee Nigrie super thermal power plant, delay in signing of PPA, low off-take by discoms, abnormal decline in merchant tariffs and lower generation of power, Jaypee Bina thermal power plant has adversely impacted operations of the company, leading to decline in operating profits and liquidity constraints, it had said earlier.

The company could not pay the outstanding overdues to lenders in a timely manner due to the aforesaid reasons. The lenders had formed a joint lenders’ forum (JLF) and formulated a corrective action plan for the company in order to resolve the financial stress.

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