Suraksha-Dosti to acquire Jaypee Infratech Ltd for over Rs 7,300 Cr

By Accommodation Times Bureau


Suraksha Asset Reconstruction Company and Mumbai-based Dosti Realty are set to acquire a Noida based firm Jaypee Infratech with a bid of 7,350 crores.

An insolvency-hit company, Jaypee Infratech that has to deliver around 25,000 houses in Noida.

“The Joint Venture has surpassed other leading competitor by a huge margin with a Rs 7,350 crore bid,” said one person.

The suggested transaction by Lakshadweep Pvt Ltd a joint venture formed by two companies promoted by people, a Joint Venture among Dosti Reality and Suraksha Asset Reconstruction Company will outcome in the eventual delisting of Jaypee Infratech, said two people familiar with the development.

The committee of creditors has preferred the bid of Lakshadweep, the firm at first offered Rs 6,900 crore and which was revised upward on Wednesday to Rs 7,350 crore, the person said.

The offer of Lakshadweep will pay off over 80% dues outstanding of Jaypee Infratech with banks. Jaypee Infratech has outstanding loans of about Rs 8,500 crore, one of the lenders said.

Under the planned transaction, Lakshadweep has reversed Rs 4,000 crore to be paid from the sale of land and another Rs 2,000 crore will be converted into long-term non-convertible debentures. It will also make a payment of Rs 1,200 core to the banks and a small equity stake is also part of the offer , said, the second person.

He further added that “The lenders will have a combined equity stake of 3.5% in the company and the balance will be with the acquirer.”

People said that Lakshadweep will also have to put funds to complete construction of apartments in Noida.

Dosti Realty a real estate firm is promoted by Deepak Goradia and whereas Suraksha Asset Reconstruction is promoted by Sudhir V Valia. Several bidders also participated in the bid like Adani Group and Kotak Realty.

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