IDBI acquires JPVL’s 32.3 crore shares

IDBI Bank has acquired 32.3 crore equity shares of Jaiprakash Power Ventures Ltd under a strategic debt restructuring scheme involving conversion of debt into equity. Post this acquisition, IDBI will hold 5.39 per cent of the company’s total of 599.6 crore equity shares.

In a similar debt restructuring scheme in February, ICICI Bank had acquired 81.44 crore shares of JPVL. Prior to this acquisition ICICI  Bank held 0.8 crore shares which was 0.13 per cent of JPVL’s total equity. This acquisition increased ICICI Bank’s Holding in JPVL to 13.72 per cent.

Last month, as part of debt restructuring scheme, JPVL had allotted its lenders 305.8 crore equity shares, which would shrink its debt by Rs 3,058 crore. Due to this, the company’s number of shares outstanding had increased from 293.8 crore shares to 599.6 crore shares.

Post this allotment, 51 per cent equity shares of JPVL will be held by financial institutions. Other major lenders who participated in the restructuring scheme include Punjab National Bank, Canara Bank, SBI, Bank of India, Oriental Bank of Commerce, to name a few.