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Jaiprakash Power Ventures says to report profit in FY21, company out of NCLT

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New Delhi: Jaiprakash Power Ventures Ltd will be able to report a net profit in fiscal 2021 following a restructuring of its debt which will help significantly bring down its interest burden.

Lenders to Jaiprakash Power Ventures, led by ICICI Bank, have restructured the bulk of the company’s debt into equity or convertible instruments.

Following the debt recast, the lenders have also withdrawn their plea for initiating insolvency proceedings against the company from the National Company Law Tribunal, Ahmedabad bench, Jaiprakash Power Ventures said in a statement.

The outstanding debt of the company, which is part of Jaiprakash Associates, has declined to 6,000 crore from 11,282 crore following the restructuring.

As a result, the company’s annual interest burden will decline to 570 crore from about 1,580 crore now, according to the statement.

Under the debt restructuring scheme, the company has also converted part of a loan from the JSW Group into equity shares at 10 each.

On Friday, on the National Stock Exchange, the stock closed at 1.95, down 2.5% from its previous close.

Following the restructuring, promoters Jaiprakash Associates will have a 24% stake in the entity, while banks and financial institutions will own 42.64%. FCCB holders will have an 8.36% stake and JSW Group will own a 5.1% stake in the company.

Jaiprakash Power Ventures has three operational plants with a generating capacity of 2,220 MW. It owns 74% stake in a 224-km transmission project, in which Power Grid holds the balance share.

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