Lakshadeep offers Jaypee Infratech ₹7,350 crore

NEW DELHI: Dark horse Lakshadeep Pvt. Ltd has emerged as the front-runner to acquire Jaypee Infratech with a bid of around Rs7,350 crore, but way lower than what the real estate developer had proposed to lenders a year back to pay off debt.

Lakshadeep Pvt. Ltd, a joint venture between Sudhir Valialed Suraksha Asset Reconstruction Company and Mumbaibased Dosti Reality, has offered Rs1,200 crore in cash to the banks, Rs4,000 crore of land parcel and the rest in form of longterm non-convertible debentures in the insolvency auction, people privy to the development said.

A small equity stake to lenders is also part of the offer. It beat Adani Group, which had offered Rs1,200 crore in cash, Rs3,500 crore of land parcel and Rs3,000 crore of back- dated instruments whose net present value is Rs500 crore to Rs1,000 crore.

Lakshadeep’s offer is, however, not better than the proposal Jaypee Infratech Ltd (JIL) had made to the joint lenders forum chaired by MDs of IDBI Bank and IIFCL on 8 March 2017, months before the real estate company was referred to the National Company Law Tribunal (NCLT). To pay off Rs8,500 crore of debt including interest, JIL had offered to pay 10% per annum interest on Rs3,140 crore of sustainable debt to be retained on its books and the rest to be paid off by giving 448 acres of land worth Rs2,340 crore as well as optionally convertible debentures and conversion of debt into equity, people in the know said.

Lenders were to get an equity of 23% following this exercise where Yes Bank had agreed to give Rs1,100 crore to promoters for infusing in the business.

But the joint lenders form did not act on the understanding reached during the March meeting. In June 2016, the company figured in the Reserve Bank of India’s list of 12 big corporate defaulters, which was referred to the NCLT for insolvency proceedings.