Shares of debt-ridden Jaiprakash Associates Ltd. hit a fresh 52-week high amid reports that its lenders have agreed to a debt recast plan, sparing it from insolvency proceedings.
The stock has gained more than 70 percent in the last one month, the highest among Nifty 500 companies.
Jaiprakash Associates has been offloading assets to repay lenders and is expected to complete the sale of its cement unit to Aditya Birla Group’s UltraTech Cement soon. The company’s debt fell by more than half to Rs 30,323 crore in the year ended March, according to Bloomberg data.
The company’s joint lenders’ forum has given an in-principle approval for its debt restructuring scheme, which may spare the company from insolvency proceedings, two bankers in the know told BloombergQuint.