Key facts
- Jaiprakash Associates (JAL) shares will be delisted from the BSE and NSE on Thursday, June 18.
- The delisting follows the conclusion of insolvency proceedings and Adani Group's acquisition of the company's assets.
- Approximately 6.48 lakh shareholders, including over 6.4 lakh retail investors, hold stakes in JAL.
- Existing shareholders will receive no compensation as their stakes are fully extinguished under the approved resolution plan.
- Adani Enterprises' Rs 14,535 crore resolution plan was approved by the NCLT on March 17.
- Adani Group has paid Rs 6,000 crore as the first tranche to JAL's lenders.
Jaiprakash Associates (JAL) is set to be delisted from the BSE and NSE on Thursday, June 18, marking the conclusion of one of the longest insolvency cases in India. The delisting follows the acquisition of the debt-ridden company's assets by the Adani Group.
The company announced in an exchange filing that it has received final approval from both the BSE and NSE for the delisting. The insolvency proceedings for JAL began in June 2024, culminating in the National Company Law Tribunal (NCLT) approving Adani Enterprises' Rs 14,535 crore resolution plan on March 17.
As part of the acquisition, the Adani Group paid approximately Rs 6,000 crore to JAL's lenders in late May as the first tranche. Additionally, Adani Power has agreed to acquire a 24% stake in Jaiprakash Power Ventures Limited for around Rs 2,994 crore and the Churk thermal power plant for Rs 1,200 crore.
For JAL's approximately 6.48 lakh shareholders, including over 6.4 lakh retail investors who collectively own a 45% stake, the outcome is stark. The approved resolution plan completely extinguishes the current shareholding structure, meaning existing shareholders will receive zero consideration for their shares. The company stated in a March filing that the liquidation value was insufficient to cover even the secured creditors' claims, leading to the NIL consideration offered to shareholders.