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Informist, Wednesday, Mar. 11, 2026

NEW DELHI – Acuite Ratings and Research Ltd. has reaffirmed its 'BBB+' long-term rating on Jaiprakash Power Ventures Ltd.'s outstanding bank loans worth INR 42.25 billion and revised the rating watch to 'Developing Implications' from 'Negative Implications', the Jaypee group company said in an exchange filing Wednesday.

Acuite Ratings and Research in a press release said the rating watch has revised to 'Developing Implications' mainly due to the corporate insolvency resolution process sought to be initiated by National Asset Reconstruction Co. Ltd. against the company under Section 7 of the Insolvency and Bankruptcy Code, 2016. National Asset Reconstruction has alleged a default of INR 5.12 billion plus interest and other charges in relation to a corporate guarantee extended by Jaiprakash Power to Jaiprakash Associates Ltd., which too is undergoing the insolvency resolution process.

The credit rating agency added that it had earlier kept the ratings under watch with 'Negative Implications' mainly due to a 2024 order of the Securities and Exchange Board of India, which imposed a penalty on Jaiprakash Power and its top officials for non-compliance of certain accounting standards from financial years 2012-13 (Apr-Mar) to FY22. However, the rating was removed since 50% of the penalty had already been deposited as per the Securities Appellate Tribunal's order, and no further demand has been raised by SEBI in the matter, according to Acuite Ratings and Research. The agency added that a a provision has been created against the penalty in the company's books for FY25, and given the quantum of the penalty, an adverse decision is not expected to have any material impact on the company's financial risk profile or its overall creditworthiness. 

For the December quarter, Jaiprakash Power had reported a consolidated net profit of INR 37.7 million on revenues of INR 11.56 billion. On Wednesday, shares of the company ended 1% higher at INR 13.66 on the National Stock Exchange.   End

Reported by Shakshi Jain

Edited by Tanima Banerjee

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