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News Topical, Digital Desk : A company embroiled in bankruptcy proceedings has once again become the center of discussion in the stock market. The stock has risen nearly 36% in a single month and has gained 26% so far in 2026. Although the stock has lost 27% in a single year, its 68% gain in three years has restored investor confidence. Public shareholding has risen to 80%. The company's comeback, amid legal battles, bank disputes, and large orders, is now surprising the market.
Once a strong presence in the power transmission line sector, this company gradually fell into difficulties. A misunderstanding between company officials and a senior official of the state-owned Power Grid Corporation severely impacted business. Government projects declined, and the company's business continued to decline. This decline ultimately led the company to bankruptcy proceedings. In 2017, Jyoti Structures was among the 12 major bankruptcy cases identified by the RBI. Following this, the company's path to recovery was not easy. In March 2019, a consortium led by Sharad Sanghi attempted to revive the company with a resolution plan worth approximately ₹4,000 crore. While paperwork was approved, the real challenge was implementing the plan on the ground. Jyoti Structures is an EPC company, where non-fund-based facilities like bank guarantees and letters of credit are crucial for project acquisition and completion. According to the resolution plan, banks were required to roll over these facilities by November 2021, but this was not achieved. Various banks imposed varying conditions, and the process dragged on. This directly impacted the company's earnings and project execution. However, the situation gradually began to change. Last year, the company won a significant stake in Power Grid's 800KV HVDC Khavda-Nagpur project. This was accompanied by repeat orders from the Adani Group. Under the leadership of new management and CEO Rajesh Kumar Singh, the company intensified its efforts to revive the business. The biggest turning point in this entire story came when the NCLAT issued strict instructions to the banks on February 16th. The tribunal stated that the banks must release bank guarantee facilities worth over ₹1,350 crore and threatened civil imprisonment for non-compliance. This decision sent a significant signal to the market that the company's stalled recovery could now move forward. Following the decision, the stock saw a rise of approximately 12%. Legal experts say that the banks' attitude was against their own interests. Some banks, such as Bank of Baroda, released the facility without any new conditions. While other banks continued to cite new approvals and procedures, the tribunal also clearly stated that repeatedly adding new conditions after the resolution plan has been approved is not appropriate. Investors are now watching to see if the banks will comply with the order within the stipulated time. If so, Jyoti Structures' recovery could be further strengthened. The recent rise in the stock shows that the market has begun to believe the company's comeback story.
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