Jaiprakash Associates: NCLT Approves Resolution Plan

Key Developments • NCLT approved resolution plan involving Adani Enterprises on March 17, 2026 • Company to be delisted from NSE & BSE • Existing equity shares to be cancelled under the resolution process • Equity shareholders set to receive no value (₹0 payout) Why It Happened • Company’s liabilities exceeded its assets • Under insolvency resolution, creditors (banks) get priority over equity holders • Residual value for shareholders becomes zero in such cases What It Means for Investors • Equity investment effectively becomes worthless post-resolution • Trading will cease after delisting • Illustrates high risk in distressed and highly leveraged companies Learning Outcome In insolvency cases, equity shareholders are last in the repayment hierarchy. If liabilities exceed assets, shareholders may lose their entire investment.