Suraksha Realty wins Jaypee Infratech bid; turns private

13 Jun 2024 CW Team

"The board of directors has set June 21, 2024, as the record date for determining which shareholders will receive the exit price," stated a regulatory disclosure. The exit price, an aggregate amount of Rs 1.4 million, matches the liquidation value, according to the company.

This move is seen as a goodwill gesture, according to a lender. Ashish Pyasi, a partner at Aendri Legal, noted that shareholders are typically the last to receive payment under the insolvency code's waterfall mechanism, often receiving nothing if the debt is too high. He highlighted the uniqueness of Jaypee Infratech?s resolution plan, as retail shareholders are rarely offered exit prices in such cases.

At the time the resolution plan was approved, Jaypee Infratech had liabilities exceeding Rs 230.83 billion, including Rs 97.83 billion owed to secured financial creditors. Nipun Singhvi, managing partner at NSA Legal, mentioned that this payment to shareholders could set a precedent for future cases, as typically there isn?t enough payout to cover even the financial creditors.

Historically, shareholders have not been compensated in similar situations, such as with National Steel and Agro Industries (NSAIL), Videocon Industries, and Sintex Industries. This development coincides with an investor in Reliance Capital (RCAP) approaching the Bombay High Court to challenge the company's delisting following its resolution process closure.

Last year, the National Company Law Tribunal (NCLT) approved Suraksha Realty's resolution plan, which included offering around 2,500 acres to bankers and Rs 13 billion in non-convertible debentures. Suraksha Realty also committed to completing all pending flats for customers within four years. Jaypee Infra shares recently closed at Rs 1.27 each, with a market cap of Rs 1.76 billion.

Suraksha Realty, the winning bidder for Jaypee Infratech, will pay an exit price to retail shareholders as the company delists from stock exchanges. Shareholders holding approximately 542 million equity units will be compensated at a value on par with the company's liquidation value. The board of directors has set June 21, 2024, as the record date for determining which shareholders will receive the exit price, stated a regulatory disclosure. The exit price, an aggregate amount of Rs 1.4 million, matches the liquidation value, according to the company. This move is seen as a goodwill gesture, according to a lender. Ashish Pyasi, a partner at Aendri Legal, noted that shareholders are typically the last to receive payment under the insolvency code's waterfall mechanism, often receiving nothing if the debt is too high. He highlighted the uniqueness of Jaypee Infratech?s resolution plan, as retail shareholders are rarely offered exit prices in such cases. At the time the resolution plan was approved, Jaypee Infratech had liabilities exceeding Rs 230.83 billion, including Rs 97.83 billion owed to secured financial creditors. Nipun Singhvi, managing partner at NSA Legal, mentioned that this payment to shareholders could set a precedent for future cases, as typically there isn?t enough payout to cover even the financial creditors. Historically, shareholders have not been compensated in similar situations, such as with National Steel and Agro Industries (NSAIL), Videocon Industries, and Sintex Industries. This development coincides with an investor in Reliance Capital (RCAP) approaching the Bombay High Court to challenge the company's delisting following its resolution process closure. Last year, the National Company Law Tribunal (NCLT) approved Suraksha Realty's resolution plan, which included offering around 2,500 acres to bankers and Rs 13 billion in non-convertible debentures. Suraksha Realty also committed to completing all pending flats for customers within four years. Jaypee Infra shares recently closed at Rs 1.27 each, with a market cap of Rs 1.76 billion.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..