Shares of Jyoti Structures Limited, a prominent Indian engineering, procurement, and construction (EPC) company specializing in power transmission infrastructure, surged over 19% in early trading on Wednesday. The significant rally was triggered by the company's announcement that its lenders have begun mobilizing substantial bank guarantees and letters of credit.
The company confirmed that these financial facilities are being progressively released by its lenders, totaling an envisaged INR 510.59 crores. This action aligns with a resolution plan previously approved by the Hon'ble National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code, 2016.
Five-Year Delay Ends for Jyoti Structures' Resolution Plan
The mobilization of these critical bank guarantees and letters of credit comes after a five-year delay. Jyoti Structures had made specific requests to its lenders for the release of these funds, following an order by the Hon'ble National Company Law Appellate Tribunal (NCLAT) in New Delhi on May 26, 2026. The company stated that these facilities are now being made available in line with its current business requirements, signaling a positive step forward in its operational stability.
Market Responds Positively to Financial Mobilization
On Wednesday, Jyoti Structures' stock saw an intra-day rise of 19.44%, climbing to Rs 12.90 from its previous close of Rs 10.80. This robust performance boosted the firm's market capitalization to Rs 1512.37 crore. Investors reacted favorably to the news, perceiving the release of the bank guarantees as a crucial development in the company's financial restructuring and future prospects.
Jyoti Structures Limited remains a key player in India's power transmission sector, undertaking complex EPC projects nationwide. The successful implementation of its NCLT-approved resolution plan is expected to provide renewed impetus for its operations and growth.