Jai Corp Limited — Important, 01-01-2025: General Updates

Jai Corp Limited has received a notice from Urban Infrastructure Holdings Private Limited (UIHPL), in which it holds a 32% equity stake, regarding a proposed capital reduction. Upon approval, the Company anticipates receiving approximately ₹364 Crore.

UIHPL's subsidiary, Dronagiri Infrastructure Private Limited (DIPL), recently divested its 74% equity stake in Navi Mumbai IIA Private Limited for about ₹1,628.03 Crore. Consequently, UIHPL is expecting a minimum of ₹1,492.50 Crore from DIPL due to the capital reduction, which could increase based on interest from surplus cash. UIHPL has also recovered ₹1,597 Crore from DIPL.

Additionally, UIHPL will obtain ₹682 Crore from redeeming Optionally Fully Convertible Debentures in Vinamra Universal Traders Private Limited, bringing its total funds to approximately ₹3,772 Crore. The upcoming extraordinary general meeting on January 2, 2025, will seek shareholder and regulatory approvals for reducing equity share capital by 99.76%, proposing an aggregate consideration of ₹3,746.87 Crore to shareholders.

Investors should watch closely as this could significantly enhance the company's liquidity position and overall financial health.