In the crisis-ridden power sector, banks are for the first time retaining the debt-plagued promoter in their restructuring plan.
Manoj Gaur, the promoter of Jaiprakash Power Ventures (JPVL), will continue to own the company but will need to infuse equity of around Rs 2,000 crore as banks get to reduce their stake from 49% to 22% in the power plant, a source familiar with the development said.
JPVL has around Rs 10,000 crore of debt. Gaur will hike his stake to over 51% stake in JPVL once the recast is complete. The promoter holding is 29.85%, as per data provided by the company to the stock exchange until December 31, 2018. Read More