Jaiprakash Power Shares Rise Up to 14% as Firm Settles NARCL Claim for ₹511 Crore

Jaiprakash Power Ventures shares climbed as much as 14% in Monday’s trading session after the company reached a settlement with the National Asset Reconstruction Company Ltd (NARCL) involving a claim of ₹511 crore. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

The stock touched an intraday high of ₹17.49 on the NSE, marking a gain of nearly 14%. Some of the early gains were pared later in the session, with the shares trading at ₹16.98, up 10.47%, at around 11:15 am. 

The share-price movement followed the disclosure that Jaiprakash Power and NARCL had agreed to settle the matter for ₹511 crore as a full and final payment. 

Settlement agreed at ₹511 crore 

Under the proposed settlement, Jaiprakash Power is required to make a payment of ₹511 crore to settle the claim with NARCL. 

The arrangement is not unconditional. According to the company, completion of the settlement remains subject to the ₹511-crore payment, fulfilment of certain other conditions and execution of definitive agreement or agreements. 

The company did not provide further details in the report on the additional conditions that need to be completed. 

Insolvency proceedings to be withdrawn after conditions are met 

The settlement also has implications for the insolvency proceedings involving the company. 

Jaiprakash Power said proceedings under the Insolvency and Bankruptcy Code (IBC) will be withdrawn once all conditions stipulated under the settlement terms have been fulfilled. 

Until those requirements are completed, the settlement remains subject to the conditions outlined by the company. 

Jaiprakash Power shares pare some early gains 

The development drew a strong response from the stock during Monday’s session. 

Jaiprakash Power shares rose nearly 14% to an intraday high of ₹17.49 on the NSE before some profit booking emerged at higher levels. 

By around 11:15 am, the stock was trading at ₹16.98, still higher by 10.47% for the session. 

The latest movement in the shares came as investors assessed the ₹511-crore settlement and the company’s statement that the related IBC proceedings would be withdrawn after the settlement conditions are fully met.