• Source:JND

Jaiprakash Power Ventures (JP Power) shares rose nearly 9 per cent in the early trade on March 18 after NCLT approved Adani Enterprises' resolution plan for JP Associates. Meanwhile, JP Associate shares did not trade as the delisting plan for the same was announced as part of the resolution process.

JP Power shares opened with a decent gap-up at Rs 14.60 as compared to the last day's closing of Rs 13.98 on NSE. The Power stock extended the gaining momentum amid buying interest, hitting an early high at Rs 15.63--up nearly 9 per cent as compared to the previous closing.

At the time of writing, JP Power shares were trading at Rs 15.04, up Rs 1.06 or 7.58 per cent. Meanwhile, the stocks' 52-week high and low values stood at Rs 27.50 and Rs 12.51, respectively.

JP Associates Resolution Plan

Earlier, on Tuesday, Adani Enterprises in an oral order said that the National Company Law Tribunal (NCLT) has approved its resolution plan for JP Associates. Adani Group was considered a successful bidder for the debt-ridden JP Associates, leaving behind Vedanta Group, Dalmia Bharat Group, Jindal Power, and PNC Infratech.

According to information, the resolution plan may be executed via Adani Enterprises, Adani's group firm and other special purpose vehicles.

Investors Holding Turns Nil

According to a statement from JP Associates, due to insufficient liquidation value, the shareholders of the Corporate Debtor holding in the company have been considered NIL.

"In the assessment of the Successful Resolution Applicant, the liquidation value is insufficient even to satisfy the claims of secured creditors in full, therefore, NIL consideration is being offered to the shareholders of the Corporate Debtor as part of the delisting process under the Approved Resolution Plan, and the exit price for the existing shareholders is therefore NIL," the company said in a exchange filing.

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The company further informed that "all necessary actions in relation to giving effect to the Delisting shall be undertaken immediately on the NCLT Approval in accordance with applicable law, and the resolution professional of the Corporate Debtor, Insolvency Professional, relevant stock exchanges and other stakeholders shall reasonably cooperate and provide assistance to the Successful Resolution Applicant in this regard."

Disclaimer: This story is for informational purposes only. It should not be considered as investment advice. 


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