Jaiprakash Associates shares plunge over 6% as loans turn non-performing

Shares of Jaiprakash Associates tumbled nearly 6 per cent on Tuesday after the firm defaulted on loans worth Rs 4,616 crore.The stock plunged 5.77 per cent to settle at Rs 17.64 apiece on the BSE.

Shares of Jaiprakash Associates tumbled nearly 6 per cent on Tuesday after the firm defaulted on loans worth Rs 4,616 crore.

The stock plunged 5.77 per cent to settle at Rs 17.64 apiece on the BSE. During the day, it tanked 7.69 per cent to Rs 17.28.

On the NSE, it dropped 5.86 per cent to Rs 17.65 per share.

The company's market capitalisation (mcap) declined by Rs 265.09 crore to Rs 4,329.91 crore.

Crisis-hit Jaypee Group's flagship firm Jaiprakash Associates has defaulted on loans worth Rs 4,616 crore, including principal and interest amount.

In a regulatory filing late on Monday, Jaiprakash Associates Ltd (JAL) informed that the company on April 30, defaulted on repayments of a principal amount of Rs 1,751 crore and interest of Rs 2,865 crore.

''Total borrowing (including interest) of the company is Rs 29,805 crore, repayable by 2037, against which only Rs 4,616 crore is overdue as on April 30, 2024,'' JAL said.

The loans pertained to various banks, and the nature of the obligation is fund-based working capital, non-fund-based working capital, term loans and FCCBs (foreign currency convertible bonds).

Out of the total borrowing of Rs 29,805 crore, the company said Rs 18,955 crore will be transferred to the proposed Special Purpose Vehicle (SPV). For this, a Scheme of Arrangement duly approved by all the stakeholders is pending for sanction of the National Company Law Tribunal (NCLT).

The entire loan in any case is under restructuring, the company said.

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