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

06 Apr 2026

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Infrastructure Urban

06 Apr 2026

India REIT Market Gains Momentum with Strong Returns

India’s Real Estate Investment Trust (REIT) market is witnessing strong growth, emerging as a competitive investment avenue both domestically and across Asia. According to a recent ANAROCK report released at EXCELERATE 2026 by NAREDCO Maharashtra NextGen, the sector is evolving into a mature asset class driven by solid fundamentals, regulatory backing and rising investor confidence.The introduction of Small and Medium REITs (SM REITs) in 2025 has further widened access through fractional ownership, unlocking a potential monetisation opportunity of Rs 670–710 billion. Indian REITs have deli..

Infrastructure Energy

06 Apr 2026

G R Infraprojects Secures Rs 4,130 Million BESS Contract From NTPC

G R Infraprojects said it has secured a contract from NTPC to supply and implement a battery energy storage system (BESS) valued at Rs 4,130 million (mn). The company reported the order was awarded as part of NTPC's ongoing efforts to enhance grid flexibility and energy storage capacity. The contract represents a notable addition to the firm's project pipeline and underscores demand for utility scale storage solutions. The award is expected to strengthen G R Infraprojects' presence in the energy infrastructure sector and to contribute to the firm's order book and future revenues, subject to st..