What do you guys think about Jaypee Greens Wishtown - NOIDA? Is this a good time to buy? Is Wishtown a good investment?

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  • Originally Posted by "saihtul
    Hi,

    I am looking for RTM on expressway, last sunday we visited Cosmos and Klassic.....Like Klassic more. Loading is very less.

    What is the on going rate for Cosmos & Klassic? Is it good buy ....as there is no other option available at expressway at cheap price.

    Kindly guide.


    I suggest you take a look at ats greens and Parasvnath Prestige

    The latter has good layout and low loading
    CommentQuote
  • Super explanations Venky!!!


    Originally Posted by Venkytalks
    While you are largely right, please consider an alternative plan below:

    A three pronged legal attack plan which DTPOWS can adopt.

    Prelim points:

    1. Engage cheap lawyer only - rely on the legal merits rather than on expensive lawyer

    2. Simultaneously file case in three courts - legal fee for filing case is just few hundred rupees

    3. Each case is different but lawyer is same and DTPOWS pays for it.

    4. Send legal notice of all 3 cases to Jaypee before filing, to fine tune the points and to get notice of their counter arguments

    5. File regardless of their reply as a bargaining tactic - especially the arrest of promoters tactic

    6. Be ready to withdraw one or more case i.e. they are bargaining counters as well - so before filing we negotiate with Jayee.

    The three cases which should be filed are as follows

    1. Consumer court: This can be approached by people who dont want their flat. A lot of people have booked in 2009 and are sitting on very poor gains. People booking in 2011 are sitting on losses. Both groups have seen their deadline pass by. A number of judgements have come where because of delay, the builder has been asked to return capital with 18% interest.

    Let us assume someone booked in 2009 and by 2012 had made 90% of payment and construction is stuck. Let us assume 50L had been paid in CLP till 2012. Then from 2012 to 2015 i.e. three years, 50L at 18% compound interest becomes 85 Lakhs. In addition, some money would have been paid from 2009 to 2012 also and the interest amount from that would become another 15 lakh, so 1 crore would be the amount as of 2015 - whih means you can file in national consumer redressal coommission. Most consumer courts give verdict after 2 years - by which time more of 18% interest would add up - and in most cases, still the flat would nt get ready. Adding interest till 2017, the amount with interest at 18% becomes 1.43 crores.

    So instead of flat, you can opt for 1.43 crores in cash even for 50 Lakhs flat. Even if the flat gets delivered, it will cost much less than this amount and will probably sell for less than 1 crore. So this is a viable option, especially given the real estate slow down.

    Please note that this is not delay compensation - this is return of capital with penal interest. There are 3 verdicts which have given this penal interest, and such a case in consumer court is most likely to stick. So the 12% delay penalty charged from buyers is not a concern in this at all - this is return of capital.

    Please note again - if Jaypee does not honour the verdict, their promoters will go to jail. Their only appeal is the supreme court - which i unlikely to entertain the appeal and is likely to throw it out without hearing based on written submission. Consumer court can also direct a payment be made pending appeal - so you get the award immediately regardless of appeal.

    If 50 people who are ready to forgo flat and get money instead can be found - Jaypee will have to pay 75 crore. A big thing.

    Simply filing this case is enough for the association to have Jaypee where it wants - because Jaypee cannot risk adverse verdict, since everybody will prefer 18% rather than flat.

    It can be used to armtwist Jaypee into forgoing super area increase - or if it gets increased, they dont charge for it (so we get it free) - a legally binding agreement to this effect - and additional compensation - can be got from Jaypee in return for dropping the suit.

    It can be filed immediately and regardless of registry because those who file dont want the flat.

    2. Allahabad High Court. We can file a case against Jaypee for not following the rules of UP Apartment Act i.e. super area increase being illegal. Filed by DTPOWS against JP, quoting the long commentary on UP apartment act given by Allahad High COurt in 2013. This is only a diversionary tactic, because the court will say - final measurement will form the basis.

    Our point will be that even if there is increase, we will pay stamp duty but we will not pay JP extra for the super area increase. This will have to be filed only by those people who have got their flat delivery i.e. Pavillion, Klassic, some towers of Kosmos and few others.

    If we win the case, JP will have to return the extra money they have charged for super area increase.

    3. Competition commission. It is expensive to do real fight in this court. Lawyers will be interested in sucking our blood only. We should file a "try our chance" petition here using cheap lawyer. Our claims will be

    a. Jaypee is dominant
    b. Jaypee did not do builder buyer agreement but only allotment letter and application form
    c. Jaypee mislead the buyers by giving 10-16% lower super area when selling
    d. They did not disclose building blueprint plans
    e. They increased super area at the end in a planned way to cheat the buyers - and made erroneous calculations for Pavillon and Klassic (as I have already posted on IREF) by including areas which should not have been included.
    f. This is abuse of dominance
    g. Average of 10% of super area increase is being demanded by Jaypee
    h. They should be penalised by stripping them of these profits being made in a malafide way by abuse of dominant postion.
    i. Also that the promoters who are in violation of UP apartment act should be arrested as laid down in the act and punished according to the laws applicable

    This case will be filed as a flanking petition only - and we will not spend money on this - because we get nothing from it. Our aim is only that we either withdraw this petition because we settle the super area issue out of court with Jaypee - or we pursue the case with minimal costs just to strip Jaypee of its ill gotten gains due to super area increase - so that even if they win in Allahabad high court or do not settle with us - they stand an even chance of being stripped of these profits and penalised in addition to it.

    All three cases should be filed simultaneously because they form a part of a larger plan - our goals from all this would be

    1. If super area is increased, fine, but we wont pay for it

    2. Increased compensation for delay to withdraw the case from consumer court

    From filing all three cases, nobody gets harmed and it costs very little. So it makes sense to go ahead.

    DTPOWS can also file a fourth and fifth cases as follows

    4. File a complaint in NOIDA authority that building plans have not been disclosed as per UP apartment act

    5. File a case in Allahabad high court after this NOIDA Authority complaint - saying that Jaypee is in violation of UP apartment act because of non disclosure - and that the promoters be arrested as laid down in UP apartments act.
    CommentQuote
  • Originally Posted by Dikraa
    I suggest you take a look at ats greens and Parasvnath Prestige

    The latter has good layout and low loading



    Hello Dikraa...thanks.

    I guess ATS Greens and Parsvnath is in Gr Noida?

    I am preferring Noida-GN expressway........for logix also we liked layout very much but delivery and quality is concern.

    Jaypee has better const quality with less loading and nice location.......at least for JP RTM properties one can buy..
    CommentQuote
  • klassic has one cons that its only having one balcony , other than that in case you get it at ~ 4400 for good location it is a good deal , apartment is very and good and big from inside except balcony issue and ready to move in so risk is relatively less . additional charges also ok .
    CommentQuote
  • Originally Posted by mahoba
    klassic has one cons that its only having one balcony , other than that in case you get it at ~ 4400 for good location it is a good deal , apartment is very and good and big from inside except balcony issue and ready to move in so risk is relatively less . additional charges also ok .


    Thanks Mahoba....

    Do you or anyone know what is the next JP project going RTM..in 6 m to 1 year?

    I know in case of JP, it is difficult to assess....6 months RTM waiting could 2yrs+ also.

    Location of Krescent home is best as it is just bang on expressway, but again when delivery will happen ..god knows.
    CommentQuote
  • Originally Posted by saihtul
    Hello Dikraa...thanks.

    I am preferring Noida-GN expressway........for logix also we liked layout very much but delivery and quality is concern.
    .


    Logix blossom county possession started. You can go and visit tower whose possession has started. Construction quality is good, white bricks, constructed by ahluwalia who has good reputation, electric switches by mk electric which is quite reputed, schindler touch screen spacious elevator, bath accessories not fitted yet so can not comment. Loading as you said best in noida. Central park 6 acres with 60 ft peripheral road around towers.
    CommentQuote
  • I just looked at Klassic floor plan.....in 1520 sft there is only 1 balcony connected with 2 bedrooms, where as in 1430sft...there are two balconies covering 2 bedrooms and D/D with utlity and also servant qtr.....

    1430 looks better.
    CommentQuote
  • Originally Posted by saihtul
    Thanks Mahoba....

    Do you or anyone know what is the next JP project going RTM..in 6 m to 1 year?

    I know in case of JP, it is difficult to assess....6 months RTM waiting could 2yrs+ also.

    Location of Krescent home is best as it is just bang on expressway, but again when delivery will happen ..god knows.


    Krescent / Kasa will be extremely noisy once traffic comes to full capacity. Better to go for off road projects, Kensington boulevard is a better project.
    CommentQuote
  • No Debt Too Big

    Jaypee Group's trajectory seems uncertain after falling deals

    Bussiness Today: Ajay Modi and Suveen Sinha New Delhi, Edition:February 15

    Manoj Gaur, executive chairman and CEO, Jaypee Group

    Lightning struck Manoj Gaur twice last year.

    He recovered both times, but his trajectory now seems uncertain in spite of the debt load on his head becoming lighter.

    That should have been expected. It is not easy when a deal on which you had been banking suddenly falls through. Twice. The circumstances were out of Gaur's control on both occasions. Who would have thought that TAQA will go away just like that?

    In March last year, it had signed up to buy Baspa and Karcham, two of Jaypee's power plants, for Rs 9,689 crore. It was not an obscure buyer. TAQA is the Abu Dhabi national energy company. It already runs a lignite-fired power plant in Chennai other than owning majority equity in a hydro power plant in Sorang, Himachal Pradesh.

    Baspa and Karcham, too, are hydro power plants, and both are in Himachal Pradesh. The deal had everything going for it. Once the money came, it would reduce Jaypee's debt substantially.

    Instead, all Jaypee received from TAQA was $9 million (Rs 54 crore) in penalty, because the Abu Dhabi company pulled out of the deal four months after signing it.

    "That was a shock," says Gaur. Worse, TAQA did not elaborate on the reason for the pullout and gave no room for discussion. "Their entire management has changed in Abu Dhabi. Something has happened. We don't know," says Gaur.

    Without wallowing in the failure of the deal, Gaur moved quickly to shake hands with Anil Ambani. "Jaiprakash Ji is a born optimist and I have inherited some optimism from him."

    "Jaiprakash Ji" is Gaur's father. He started his career as a civil engineer with the Uttar Pradesh irrigation department and went on to set up the Jaypee Group, known for constructing the Sardar Sarovar dam over the Narmada in Gujarat and the Tehri dam over the Bhagirathi in Uttarakhand. The group's turnover today stands at Rs 20,000 crore.

    Their Cross to Carry

    The trouble is that debt has kept pace with growth. The combined debt of the group's three listed companies -Jaiprakash Associates, Jaiprakash Power Ventures, and Jaypee Infratech - crossed Rs 57,000 crore (see A Debt Overhang) in 2013/14.

    Construction and infrastructure companies typically have large debt: Delhi airport builder GMR Infrastructure and Bandra-Worli Sealink builder Hindustan Construction Company have their own crosses to carry (see A Wider Malaise).

    But Jaypee's debt, distributed over many companies, towers over them. CARE Ratings downgraded Jaiprakash Associates' bank facilities twice at the end of last year. Jatin Babbar, CARE Analyst, however, said in the report that the ratings drew comfort from the experienced promoter's record and expertise in infrastructure.

    No such comfort for the stock market, though. The share prices of Jaypee's listed companies have been in free fall (see Shedding Value) even as market indices have soared. And Gaur is out to arrest the fall, keeping the deal market buzzing (see Easing Burden). He is helped in no small measure by the fact that none of his companies is doing badly and the equipment used in his factories is thought of as good quality.

    For instance, the hydro power projects have equipment bought from European and Japanese manufacturers, and India's own BHEL; they do not have a screw from China. Kumar Mangalam Birla, Chairman of Aditya Birla Group, is believed to have been attracted to Jaypee's cement plants because of their good quality.

    "Their plant is modern and state-of-the-art. The whole deal happened very smoothly," says H M Bangur, MD of Shree Cement, which bought Jaypee's grinding unit in Panipat last August.

    Therefore, the TAQA debacle, as they say in cricket, was a wicket that fell against the run of play. "When you are responsible for an organisation with thousands of people, when you see that banks are supporting you, you have to show good footwork," says Gaur, again invoking cricket.

    There are two things other than cricket that appear frequently in conversations with him: old Hindi films and their songs, and God. He attributes the next chapter in the story of his hydro power plants to divine intervention. Interestingly, his belief is rooted in real life.

    Anil Ambani had seen Jaypee's Vishnu Prayag project a number of times on his visits to the much-revered shrine in Badrinath. The day TAQA pulled out, July 24, men from the Anil Dhirubhai Ambani Group got in touch with Jaypee to say they were interested.

    Ambani was looking to buy a third plant, the one at Vishnu Prayag, along with the ones at Baspa and Karcham that TAQA had sought. The acquisition could have made Reliance Power the country's biggest private hydro power player. The plants, with an estimated asset life of over 50 years, would have contributed to the company's revenue from the first day. This seemed another match made in heaven, only better.

    That was when lightning struck a second time.

    Wedding Bells

    On September 24, exactly two months after signing the deal, Reliance Power walked out of it citing regulatory uncertainty and tariff issues. The uncertainly was apparently triggered by the Supreme Court's order on the same day that cancelled 214 coal block allocations.

    But it was not long before Gaur had another buyer. Sajjan Jindal, CMD of JSW Energy, sent word that he wanted to step into Ambani's shoes.

    "I did not contact them. Within 24 hours of sending the message, Sajjan Jindal flew and met Jaiprakash Ji," says Gaur. Jindal was not available for comment. But he looks committed to the deal.

    This is a definitive agreement, unlike the one with Ambani. Moreover, JSW Energy's stronger cash flow gave greater comfort. With the deal, it is now JSW Energy that is poised to become the biggest private sector hydro power producer in the country. In Gaur's colourful language, with Ambani it was just an intent to marry; with Jindal the engagement has taken place and only the wedding vows are to be taken.

    Jindal, says Gaur, had spoken to him earlier to explore a joint venture in power. But Gaur's mind, for reasons obvious to anyone aware of his debt mountain, was set on selling assets.

    Master of None

    Has that single-minded pursuit made him overlook elements of strategy? With the flurry of deals, Jaypee has reduced its presence in power and cement, but not exited either, ending up a bit player in both. All major business groups make it a point to be among the top two or three in their areas.

    Surely, Gaur would have similar ambition. Will he be happy being the fourth- or fifth-largest in cement, compared to third earlier? He will be left with only 12 plants, compared to 19 before the debt-reduction drive started. He will have just one hydro power plant left in his portfolio, down from three, to go with his three thermal power plants.

    "There will be opportunities for future growth," says Gaur. The group will claw its way back when things look up. "We will consolidate and Jaypee will stay in cement, hydro and thermal power, and be a significant player in health care, hotels and real estate."

    Those who claim to know Gaur and Jaypee well say he might not show the same determination towards fertiliser, a sector he entered by buying Kolkata-based Duncan's plant in Kanpur in 2010, and semiconductors, a project that has been in limbo with no mean contribution from the UPA government's inactivity.

    Getting out of those two will go some way to quell the clamour against his rapid diversification of recent years.

    Damn Diversification!

    Last July, Edelweiss had a buy recommendation on Jaypee Associates, but cut its target price to less than half two months later in the aftermath of the deal dallying. Regulatory issues had arisen for real estate projects in Noida, where Jaypee is building the sprawling, 1,125-acre Wish Town. The brokerage house also frowned upon Jaypee's diversification into unrelated businesses of health care, fertiliser, and semiconductors.

    On the face of it, the most unrelated of businesses Jaypee entered in recent years was Formula 1. However, look deeper and you would see it as a clever ploy to showcase the real estate around the Yamuna Expressway, where Jaypee has the right to develop five townships. The showcase now has a thick curtain of uncertainty on it, as Formula 1 bosses, for the time being at least, are not holding races in India.

    Diversification would not have been an issue in the heyday of expansion - much of it leveraged - by Indian companies before the financial crisis hit the world in 2008. Since then, it has gone out of fashion.

    Gaur says nobody discussed debt-equity ratios back then. "The ratio is always important, but more important is the promoter's commitment to service loans. We always service our loans regularly and timely."

    He admits to only one mistake, which most analysts and economists also made: predicting high growth for India's economy. But while the analysts and economists stayed disinterested, Gaur went ahead and built big assets, none bigger than the 165-km Yamuna Expressway that gobbled up Rs 13,000 crore.

    "The group's loans kept on rising with expansion while its assets did not turn productive the way they were expected to, nor did their valuation rise," says a brokerage analyst who declined to be named.

    Overcome with Overhang

    Gaur's arguments fall on deaf ears, going by the loud whispers of a debt overhang on his group that refuse to go away. Gaur says whispers, rather than real issues, beat down his shares. "I don't want to sound critical, but the way our shares have been beaten is not right. We took debt but we have invested in creating assets. We have completed all projects. Not a rupee from the money raised through IPO, FCCB or QIP was kept in the bank. It is very easy to go in for a CDR. We did not."

    IPO, initial public offering, raises money from the public. QIP, qualified institutional placement, does the same from fund houses. FCCB, foreign currency convertible bonds, raises money from overseas investors. CDR, corporate debt restructuring, is the mechanism by which banks extend terms of loans and adopt other means to help businesses pay back.

    Gaur says he does not need a CDR because he is already moving heaven and earth to reduce debt. The deals he has struck will reduce it to below Rs50,000 crore. That, he believes, would be within reasonable limits for a group of its size. "Jaiprakash Ji is very clear that we should not give any pain to the banks. Even if we have to part with the best operating assets, we will go for it."

    What if lightning struck a third time? "What if JSW pulls out of the deal?" a newspaper reporter asked Gaur after the announcement was made.

    "What is the guarantee that your newspaper will come out tomorrow?" Gaur shot back.

    The newspaper did. All eyes on Gaur now.
    CommentQuote
  • Thanks for sharing
    CommentQuote
  • Originally Posted by Shaurya29
    Krescent / Kasa will be extremely noisy once traffic comes to full capacity. Better to go for off road projects, Kensington boulevard is a better project.

    between road and krescent/ Kasa, you have commercial belt, which once constructed will reduce the noise of expressway.. with that you have connectivity right on expressway and commercial belt on doorsteps. so you win something with some copromise
    CommentQuote
  • Don't think they will come out of this mess. No urgency from them to get rid of the debt and I don't see any asset with them that will turn gold in next 1-2 years. Default is just a start and this pain will be much longer than anticipated for them...



    Originally Posted by mahajanmail
    No Debt Too Big

    Jaypee Group's trajectory seems uncertain after falling deals

    Bussiness Today: Ajay Modi and Suveen Sinha New Delhi, Edition:February 15

    Manoj Gaur, executive chairman and CEO, Jaypee Group

    Lightning struck Manoj Gaur twice last year.

    He recovered both times, but his trajectory now seems uncertain in spite of the debt load on his head becoming lighter.

    That should have been expected. It is not easy when a deal on which you had been banking suddenly falls through. Twice. The circumstances were out of Gaur's control on both occasions. Who would have thought that TAQA will go away just like that?

    In March last year, it had signed up to buy Baspa and Karcham, two of Jaypee's power plants, for Rs 9,689 crore. It was not an obscure buyer. TAQA is the Abu Dhabi national energy company. It already runs a lignite-fired power plant in Chennai other than owning majority equity in a hydro power plant in Sorang, Himachal Pradesh.

    Baspa and Karcham, too, are hydro power plants, and both are in Himachal Pradesh. The deal had everything going for it. Once the money came, it would reduce Jaypee's debt substantially.

    Instead, all Jaypee received from TAQA was $9 million (Rs 54 crore) in penalty, because the Abu Dhabi company pulled out of the deal four months after signing it.

    "That was a shock," says Gaur. Worse, TAQA did not elaborate on the reason for the pullout and gave no room for discussion. "Their entire management has changed in Abu Dhabi. Something has happened. We don't know," says Gaur.

    Without wallowing in the failure of the deal, Gaur moved quickly to shake hands with Anil Ambani. "Jaiprakash Ji is a born optimist and I have inherited some optimism from him."

    "Jaiprakash Ji" is Gaur's father. He started his career as a civil engineer with the Uttar Pradesh irrigation department and went on to set up the Jaypee Group, known for constructing the Sardar Sarovar dam over the Narmada in Gujarat and the Tehri dam over the Bhagirathi in Uttarakhand. The group's turnover today stands at Rs 20,000 crore.

    Their Cross to Carry

    The trouble is that debt has kept pace with growth. The combined debt of the group's three listed companies -Jaiprakash Associates, Jaiprakash Power Ventures, and Jaypee Infratech - crossed Rs 57,000 crore (see A Debt Overhang) in 2013/14.

    Construction and infrastructure companies typically have large debt: Delhi airport builder GMR Infrastructure and Bandra-Worli Sealink builder Hindustan Construction Company have their own crosses to carry (see A Wider Malaise).

    But Jaypee's debt, distributed over many companies, towers over them. CARE Ratings downgraded Jaiprakash Associates' bank facilities twice at the end of last year. Jatin Babbar, CARE Analyst, however, said in the report that the ratings drew comfort from the experienced promoter's record and expertise in infrastructure.

    No such comfort for the stock market, though. The share prices of Jaypee's listed companies have been in free fall (see Shedding Value) even as market indices have soared. And Gaur is out to arrest the fall, keeping the deal market buzzing (see Easing Burden). He is helped in no small measure by the fact that none of his companies is doing badly and the equipment used in his factories is thought of as good quality.

    For instance, the hydro power projects have equipment bought from European and Japanese manufacturers, and India's own BHEL; they do not have a screw from China. Kumar Mangalam Birla, Chairman of Aditya Birla Group, is believed to have been attracted to Jaypee's cement plants because of their good quality.

    "Their plant is modern and state-of-the-art. The whole deal happened very smoothly," says H M Bangur, MD of Shree Cement, which bought Jaypee's grinding unit in Panipat last August.

    Therefore, the TAQA debacle, as they say in cricket, was a wicket that fell against the run of play. "When you are responsible for an organisation with thousands of people, when you see that banks are supporting you, you have to show good footwork," says Gaur, again invoking cricket.

    There are two things other than cricket that appear frequently in conversations with him: old Hindi films and their songs, and God. He attributes the next chapter in the story of his hydro power plants to divine intervention. Interestingly, his belief is rooted in real life.

    Anil Ambani had seen Jaypee's Vishnu Prayag project a number of times on his visits to the much-revered shrine in Badrinath. The day TAQA pulled out, July 24, men from the Anil Dhirubhai Ambani Group got in touch with Jaypee to say they were interested.

    Ambani was looking to buy a third plant, the one at Vishnu Prayag, along with the ones at Baspa and Karcham that TAQA had sought. The acquisition could have made Reliance Power the country's biggest private hydro power player. The plants, with an estimated asset life of over 50 years, would have contributed to the company's revenue from the first day. This seemed another match made in heaven, only better.

    That was when lightning struck a second time.

    Wedding Bells

    On September 24, exactly two months after signing the deal, Reliance Power walked out of it citing regulatory uncertainty and tariff issues. The uncertainly was apparently triggered by the Supreme Court's order on the same day that cancelled 214 coal block allocations.

    But it was not long before Gaur had another buyer. Sajjan Jindal, CMD of JSW Energy, sent word that he wanted to step into Ambani's shoes.

    "I did not contact them. Within 24 hours of sending the message, Sajjan Jindal flew and met Jaiprakash Ji," says Gaur. Jindal was not available for comment. But he looks committed to the deal.

    This is a definitive agreement, unlike the one with Ambani. Moreover, JSW Energy's stronger cash flow gave greater comfort. With the deal, it is now JSW Energy that is poised to become the biggest private sector hydro power producer in the country. In Gaur's colourful language, with Ambani it was just an intent to marry; with Jindal the engagement has taken place and only the wedding vows are to be taken.

    Jindal, says Gaur, had spoken to him earlier to explore a joint venture in power. But Gaur's mind, for reasons obvious to anyone aware of his debt mountain, was set on selling assets.

    Master of None

    Has that single-minded pursuit made him overlook elements of strategy? With the flurry of deals, Jaypee has reduced its presence in power and cement, but not exited either, ending up a bit player in both. All major business groups make it a point to be among the top two or three in their areas.

    Surely, Gaur would have similar ambition. Will he be happy being the fourth- or fifth-largest in cement, compared to third earlier? He will be left with only 12 plants, compared to 19 before the debt-reduction drive started. He will have just one hydro power plant left in his portfolio, down from three, to go with his three thermal power plants.

    "There will be opportunities for future growth," says Gaur. The group will claw its way back when things look up. "We will consolidate and Jaypee will stay in cement, hydro and thermal power, and be a significant player in health care, hotels and real estate."

    Those who claim to know Gaur and Jaypee well say he might not show the same determination towards fertiliser, a sector he entered by buying Kolkata-based Duncan's plant in Kanpur in 2010, and semiconductors, a project that has been in limbo with no mean contribution from the UPA government's inactivity.

    Getting out of those two will go some way to quell the clamour against his rapid diversification of recent years.

    Damn Diversification!

    Last July, Edelweiss had a buy recommendation on Jaypee Associates, but cut its target price to less than half two months later in the aftermath of the deal dallying. Regulatory issues had arisen for real estate projects in Noida, where Jaypee is building the sprawling, 1,125-acre Wish Town. The brokerage house also frowned upon Jaypee's diversification into unrelated businesses of health care, fertiliser, and semiconductors.

    On the face of it, the most unrelated of businesses Jaypee entered in recent years was Formula 1. However, look deeper and you would see it as a clever ploy to showcase the real estate around the Yamuna Expressway, where Jaypee has the right to develop five townships. The showcase now has a thick curtain of uncertainty on it, as Formula 1 bosses, for the time being at least, are not holding races in India.

    Diversification would not have been an issue in the heyday of expansion - much of it leveraged - by Indian companies before the financial crisis hit the world in 2008. Since then, it has gone out of fashion.

    Gaur says nobody discussed debt-equity ratios back then. "The ratio is always important, but more important is the promoter's commitment to service loans. We always service our loans regularly and timely."

    He admits to only one mistake, which most analysts and economists also made: predicting high growth for India's economy. But while the analysts and economists stayed disinterested, Gaur went ahead and built big assets, none bigger than the 165-km Yamuna Expressway that gobbled up Rs 13,000 crore.

    "The group's loans kept on rising with expansion while its assets did not turn productive the way they were expected to, nor did their valuation rise," says a brokerage analyst who declined to be named.

    Overcome with Overhang

    Gaur's arguments fall on deaf ears, going by the loud whispers of a debt overhang on his group that refuse to go away. Gaur says whispers, rather than real issues, beat down his shares. "I don't want to sound critical, but the way our shares have been beaten is not right. We took debt but we have invested in creating assets. We have completed all projects. Not a rupee from the money raised through IPO, FCCB or QIP was kept in the bank. It is very easy to go in for a CDR. We did not."

    IPO, initial public offering, raises money from the public. QIP, qualified institutional placement, does the same from fund houses. FCCB, foreign currency convertible bonds, raises money from overseas investors. CDR, corporate debt restructuring, is the mechanism by which banks extend terms of loans and adopt other means to help businesses pay back.

    Gaur says he does not need a CDR because he is already moving heaven and earth to reduce debt. The deals he has struck will reduce it to below Rs50,000 crore. That, he believes, would be within reasonable limits for a group of its size. "Jaiprakash Ji is very clear that we should not give any pain to the banks. Even if we have to part with the best operating assets, we will go for it."

    What if lightning struck a third time? "What if JSW pulls out of the deal?" a newspaper reporter asked Gaur after the announcement was made.

    "What is the guarantee that your newspaper will come out tomorrow?" Gaur shot back.

    The newspaper did. All eyes on Gaur now.
    CommentQuote
  • Families have started to move into Wishtown folks -

    Following towers in Wishtown now have inhabitants -

    Kosmos - Tower 8-9
    Klassic - A9-A10-B-1
    Pavilion Court - Tower 1-4

    For more checkout -
    https://www.facebook.com/groups/jaypee.greens.wishtown.noida/
    CommentQuote
  • Originally Posted by djvjain
    Don't think they will come out of this mess. No urgency from them to get rid of the debt and I don't see any asset with them that will turn gold in next 1-2 years. Default is just a start and this pain will be much longer than anticipated for them...


    A lot of people will disagree with you including myself.
    I wonder what makes you follow jaypee threads so religiously , especially when you are not even invested in any of jaypee properties. You have given one or more warnings on an average in every page. I visit jaypee threads because i live in wishtown. No offense.
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  • Workers are on a rise- overall around 5000 to 7000 workers in wishtown at the moment.
    may this pace continue. Our long wait will be over. orchards and kube are my only worry at the moment, since i am invested in orchards
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