Shares prices of two companies, ABG Shipyard and Jyoti Structures, out of the 12 NPA accounts identified by RBI were 4.95% and 20% higher respectively on the BSE today. Bankers led by State Bank of India (SBI), the lead banker on six of the 12 accounts identified by RBI, are reportedly meeting today to arrive at a consensus on the resolution plan before initiating insolvency proceedings on six of the 12 bad loan accounts identified for immediate referral to the National Company Law Tribunal (NCLT).
The twelve accounts reportedly are ABG Shipyard, Alok Industries, Amtek Auto, Bhushan Power, Bhushan Steel, Electrosteel Steels, Era Infra, Essar Steel, Jaypee Infratech, Jyoti Structures, Lanco Infratech, Monnet Ispat. Out of these twelve companies, shares of Bhushan Power, Era Infra, and Essar Steel have not been traded for the past 30 days.
Except for ABG Shipyard and Jyoti Structures, all the other traded scripts in this list of 12 of India’s biggest NPAs were considerably down today, with Amtek Auto and Lanco Infratech falling upto 20% and triggering the lower circuit on both the BSE and the NSE.
You may also like to watch:
All these scrips, including ABG Shipyard and Jyoti Structures, have been on the downtrend since the Narendra Modi-led government notified the ordinance for speedy resolutions of NPA, which gave powers to the RBI to direct banks to initiate bankruptcy proceedings against bad debt accounts under the Insolvency and Bankruptcy Code 2016 (IBC).
Lanco Infratech is the first of these 12 accounts on which bankruptcy proceedings have been initiated, a fact confirmed by the company in an exchange filing on Saturday. The company, in a filing to the BSE, confirmed on Saturday that the RBI has directed the company’s lead lender, IDBI Bank, to initiate a corporate insolvency resolution process under the IBCode. On the back of this announcement on Saturday, shares of Lanco tanked 20% to a new record low of Rs. 1.88 on the BSE today.