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Jaypee Greens Wishtown, Noida

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Jaypee Greens Wishtown, Noida

Last updated: June 18 2021
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  • Re : Jaypee Greens Wishtown, Noida

    You are certain that the group will fail/fold without knowing how many assets they have sold, how many they have yet to be sold?

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    • Re : Jaypee Greens Wishtown, Noida

      Originally posted by dineshsays View Post
      You are certain that the group will fail/fold without knowing how many assets they have sold, how many they have yet to be sold?
      Mr dineshsays,
      UNlike you, I am not certain about anything. Every day I have to evaluate problems that depend on thousands of variables and make decisions based on a probabalistic approach.

      Unlike you I have a full time profession and don't have time to indulge in childish prattle.

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      • Re : Jaypee Greens Wishtown, Noida

        @dineshsays the market cap of 3500 odd crores for all the 3 listed companies reflects the reality on the ground. Also there are lot of loans by unlisted subsidiaries not reflecting on the primary balance sheet of the 3 listed cos.

        The situation is grim.

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        • Re : Jaypee Greens Wishtown, Noida

          Selection of Asset for selling by Jaypee is also based on the expected 2017 UP Assembly election results. Most probable outcome for 2017 elections is a BSP + BJP combined Govt.

          Once BSP comes back to rule, a new cycle of development will start in this region. Jewar airport will be the first big thing happening which will drive many other fronts. Land values along Y-eway will see a surge & Jaypee is waiting for that.

          So Wishtown buyers, be optimistic & Wish a good govt coming back to rule UP.

          Akhilesh Yadav trying to present pro-development image by giving clearance to Jewar airport, but Central BJP govt will try to delay it by 6 to 7 more months till next elections in 2017. Credit will go to next UP govt which most probably would be a BSP + BJP alliance.
          Last edited May 19 2016, 03:40 PM.

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          • Re : Jaypee Greens Wishtown, Noida

            Originally posted by jollygood View Post
            @dineshsays the market cap of 3500 odd crores for all the 3 listed companies reflects the reality on the ground. Also there are lot of loans by unlisted subsidiaries not reflecting on the primary balance sheet of the 3 listed cos.

            The situation is grim.
            Jollygood sir, are you adjusting the market cap down for cross holdings ? If company a is worth 100 crore and company b owns 50% of a and is worth 100 crore, consolidated market cap is 150, not 200.

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            • Re : Jaypee Greens Wishtown, Noida

              The election results are atleast 1 year away, another 1 more year for any meaningful work to start. In this 2 years only the interest burden will be another 10K crore at the min. How is JP going to service this.

              Also the UP govt does not money to give away, they can only offer land etc, which JP already has, so what can the govt really do to salvage the situation?

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              • Re : Jaypee Greens Wishtown, Noida

                Originally posted by sahil092012 View Post
                Selection of Asset for selling by Jaypee is also based on the expected 2017 UP Assembly election results. Most probable outcome for 2017 elections is a BSP + BJP combined Govt.

                Once BSP comes back to rule, a new cycle of development will start in this region. Jewar airport will be the first big thing happening which will drive many other fronts. Land values along Y-eway will see a surge & Jaypee is waiting for that.

                So Wishtown buyers, be optimistic & Wish a good govt coming back to rule UP.

                Akhilesh Yadav trying to present pro-development image by giving clearance to Jewar airport, but Central BJP govt will try to delay it by 6 to 7 more months till next elections in 2017. Credit will go to next UP govt which most probably would be a BSP + BJP alliance.
                There is a difference between optimism and delusion. Jewar airport is commercially unviable for decades. Navi Mumbai airport which is commercially viable and where all approvals are in place is yet to take off.

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                • Re : Jaypee Greens Wishtown, Noida

                  Jaypee's left out loan is now in range of 25 to 30 K crores. This will attract interest of around 3 to 4K crores a year and not 10K crores.

                  Secondly, the airport will appreciate the value of huge land bank Jaypee is having along the yamuna e-way. F1 is likely to get tax exemption. The unsold projects on sports city will see some appreciation.

                  But yes, this all is subject to two conditions that are actually interlinked:

                  1. BSP coming back to rule UP
                  2. Jewar airport see a ray of light...

                  Otherwise there is no other third factor which can impact the RE in Noida-Gr Noida in atleast next 3 to 4 yrs...

                  Comment


                  • Re : Jaypee Greens Wishtown, Noida

                    The situation now with jaypee and many other companies not just in RE but also in commodities, power etc. (completely solvent on paper but in dire distress for working capital) is a new thing in our economy. Its a new learning for our banks, for our industry. In some ways its unrpecedented. In the traditional economy, land used to be a very valuable asset and was cosidered the best collatral you can possibly have to secure your debts. All these now beleaguered companies own hundreds and thousands of acres of land. However, in an illiquid market, fungibilitty of land becomes almost zero. Banks (and RBI) realise that conundrum. nobody gains by destruction of corporate wealth in an economy, so banks will be foolish to force a solution (by sale, takeover or otherwise) in this situation, as there are multiple forces (lien holders) at play and they may not be able to recover even half their dues, and on top of that get tangled up in a legal mess that would take them decades to sort out. There are vultures who see an opportunity in this paradoxical situation of both the lender and the borrower, and they close in for the kill. The vultures include, potential buyers who wish to acquire distressed assets that they know can be converted into healthy ones with time and some capital infusion. Politically backed groups which can get regulatory or policy favours and revive broken industries. Strategic investors or consortiums who have the power to hold out get the most out of creating a distress and panic forcing banks to disinvest these assets for much lower valuations. our media is famously competent to work for these interests.

                    Now the interesting thing to see is does the government and banks give in to these forces and write off the losses as cost of doing business or would they really play the role of strategic investors. This decision is not about financial wizardry, as much as its about regulatory backing and political will.

                    In either case investors (people who have paid on the basis of the allotment of these properties) have a solid claim against the ultimate buyer who takes these distressed assets over. These liabilities will not just vanish. With so many cases piling up against Jaypee and court decisions for compensation coming in, these will all be passed on to the buyer "as is where is" basis. meaning they have to sort out this mess of delay penalties or interest, compensation etc. on top of principal amounts paid by home buyers.

                    So its a situation where no one is getting their wish - jaypee wants to pay off, but they can't, banks want to sell off and recover but they can't, strategic investors (vultures) waiting to scavenge what is left over but they are wary of getting trapped.

                    No solution is apparent at the moment which leaves it to Jaypee, as a reluctant owner waiting for better days to come.

                    I still believe that Jaypee has a positive networth (on a notional valuation), otherwise banks wont be phoo..phoo ing around.

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                    • Re : Jaypee Greens Wishtown, Noida

                      Originally posted by sahil092012 View Post
                      Jaypee's left out loan is now in range of 25 to 30 K crores. This will attract interest of around 3 to 4K crores a year and not 10K crores.

                      Secondly, the airport will appreciate the value of huge land bank Jaypee is having along the yamuna e-way. F1 is likely to get tax exemption. The unsold projects on sports city will see some appreciation.

                      But yes, this all is subject to two conditions that are actually interlinked:

                      1. BSP coming back to rule UP
                      2. Jewar airport see a ray of light...

                      Otherwise there is no other third factor which can impact the RE in Noida-Gr Noida in atleast next 3 to 4 yrs...
                      Just for your info, even the 15K crore from UltraTech will flow in only after the deal is consummated. similar for others. I mentioned 10K interest for 2 years. You cannot expect everything to be in place the day the new govt is sworn in and that too is 1 year away
                      Last edited May 19 2016, 05:26 PM.

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