Jaiprakash Associates is the flagship company of the Jaypee Group which is engaged in engineering & construction (E&C), cement, hospitality & real estate businesses. JAL is also the holding company for various subsidiaries engaged in cement, power, real estate and other diversified business activities.
The obligors had pledged over 18.93 crore equity shares of JAL with ICICI Bank for the facilities extended to JAL, the exchange filing said. “After settlement with the obligors, the Bank would reduce its dues from JAL, to the extent of value of shares transferred to the Bank, under the Settlement Agreement,” the filing said further.
The transfer of shareholding did not require any government or regulatory approval as the shares meant to be transferred were less than the mandatory 10% requirement, the exchange filing said.
Shares of ICICI Bank had ended at Rs 934.10 on the NSE on Monday, and were down by Rs 8.25 or 0.88% from the previous closing price. Meanwhile, Jaiprakash Associates shares settled at Rs 19.30, up by Rs 1.15 or 6.34%.
ICICI Bank shares have been a market laggard and given just over 2% returns in the last 1-year period versus 5.65% returns given by Nifty50.The JAL shares have jumped over 100% in the last 12 months while its year-to-date returns stand at 75%.
Indian equity markets were closed on Tuesday on account of Diwali Balipratipada.
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