Jai Corp shares nosedive 20% on UIHPL’s capital discount proposal
“The Firm hereby informs that it has obtained a discover (“Discover”) from City Infrastructure Holdings Personal Restricted (“UIHPL”), through which the Firm owns a 32% fairness stake, for convening a rare normal assembly of UIHPL to approve the capital discount proposed to be undertaken by UIHPL,” learn Jai Corp’s submitting to the exchanges.
The proposed capital discount is topic to the shareholders and different regulatory approvals, on the completion of which UIHPL will obtain roughly Rs 364 crore.
The unit of City Infrastructure Holdings, Dronagiri Infrastructure (DIPL) offered its 74% stake in Navi Mumbai IIA for Rs 1,628.03 crore, valuing the corporate at Rs 2,200 crore, to Reliance Industries, in line with an replace shared by the latter in December final 12 months.
RIL, in early December, introduced its acquisition of a 74% fairness stake in Navi Mumbai IIA. The RIL board accredited the deal on December 11, 2024, following CIDCO’s waiver of its first refusal rights on December 12, 2024.
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Based on the current submitting by Jai Corp, UIHPL has obtained a discover convening a rare normal assembly with DIPL proposing the discount of its fairness share capital, on the completion of which UIHPL will obtain a minimal quantity of Rs 1,492.50 crore.
Moreover, Jai Corp additionally knowledgeable that UIHPL has already obtained the promoter’s contribution in the direction of fairness to the subsidiary firm of Rs 1,597 crore from DIPL.
“The Board of UIHPL proposes to scale back 99.76% of its share capital (i.e. fairness shares and totally compulsorily convertible choice shares (“CCPS”) on a proportionate foundation, and pay an combination consideration of INR 3,746.87 crores to its shareholders in the direction of such capital discount,” Jai Corp added.
Lastly, it was knowledgeable that UIHPL can even obtain Rs 682 crore on redemption of optionally totally convertible debentures held by it in Vinamra Common Merchants, making the entire funds with UIHPL a minimal of Rs 3,772 crore.
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