Jaiprakash Associates to transfer 7.71% equity to ICICI Bank as its payment obligation
Banking & Finance
Jaiprakash Associates announced that it has entered into an agreement with ICICI Bank to transfer equity to the lender as part of efforts to reduce its debt burden. Jaiprakash Associates' latest shareholding disclosure shows that its promoters held 37.7% stake in the company, of which 20.46% stake was pledged till September 30, 2023. These were 18.93 crore shares of the company, representing 7.71% of the total equity shares. ICICI Bank's core investment in Jaiprakash Associates is around ₹3,000 crore, full details of which are given in the bank's books. Jaypee Associates owes ₹29,272 crore, including interest, to 22 lenders led by ICICI Bank, SBI, IDBI Bank and others. Jaiprakash Associates had said it had defaulted on borrowings worth ₹4,258 crore from banks and financial institutions. Earlier, there were defaults in payment of loans worth Rs 4,044 crore from various banks on June 30 and principal amount of Rs 1,642 crore and interest of Rs 2,314 crore on April 30.
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