Jyoti Structures Shares Rally 19% After Lenders Begin Releasing ₹510.59 Crore Bank Guarantees Under NCLT Resolution Plan

Jyoti Structures is finally getting access to bank guarantees and letters of credit worth ₹510.59 crore, five years after the facilities were envisaged under its resolution plan.

Lenders have now started releasing them following the approval of the National Company Law Tribunal (NCLT). The company had been unable to fully utilise its order book because these banking facilities were not available.

What Triggered The Rally In Jyoti Structures Shares?

The announcement brought buyers into the stock on Wednesday. The Jyoti Structures share price climbed 19.24% to an intraday high of ₹12.89 at 11:20 AM on the National Stock Exchange (NSE). This was close to its upper circuit limit of 20%.

In its exchange filing, the company said lenders had begun releasing the facilities in phases. The move follows an order passed by the National Company Law Appellate Tribunal (NCLAT) on 26 May 2026.

Jyoti Structures had approached its lenders after the order, asking them to release the guarantees and letters of credit in accordance with the approved resolution plan and subsequent tribunal directions.

How Will The Release Help Jyoti Structures?

Jyoti Structures had been waiting for these facilities for five years. Without bank guarantees and letters of credit, the company could not execute several orders as planned. This had limited its ability to take up projects despite having an existing order book.

For companies in the EPC business, bank guarantees are often a requirement when bidding for projects or signing contracts. Their availability should make it easier for Jyoti Structures to take up pending work and compete for fresh orders in the power transmission and infrastructure sectors.

The company also expects to pursue fresh opportunities in power transmission and infrastructure. The latest Jyoti Structures bank guarantee development is therefore important for its business, particularly as it looks to make better use of its existing order book.

For investors following Jyoti Structures latest news, the next thing to watch will be how quickly lenders release the remaining facilities and whether the company can translate the improved access into actual project execution.

Also Read - Ashoka Buildcon Shares Jump 14% After Winning ₹866 Crore NHAI Contract; Stock Still Down Nearly 43% In A Year