Vedanta gets CCI nod to acquire Jaiprakash Associates for Rs 17,000 crore
Vedanta emerged as the preferred bidder in a tightly contested auction, outbidding the Adani Group with an overall offer of Rs 17,000 crore, which equates to Rs 12,505 crore in net present value terms. The payment structure includes an upfront settlement of around Rs 3,800 crore, followed by annual instalments of Rs 2,500–3,000 crore over the next five years.
- Oct 14, 2025,
- Updated Oct 14, 2025 8:05 PM IST
Vedanta Limited has received the green light from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 crore under the Insolvency and Bankruptcy Code (IBC) process. This marks a significant development in Vedanta’s bid to expand beyond its core mining and metals operations into sectors such as cement, real estate, and infrastructure.
JAL, once the flagship of the Jaypee Group, has faced mounting financial distress, with creditors’ claims totalling nearly Rs 59,000 crore. The acquisition plan features a combination of upfront and staggered payments, reflecting the complexity of the transaction. The CCI’s approval follows a competitive bidding round, positioning Vedanta as the highest bidder for the struggling conglomerate.
Vedanta emerged as the preferred bidder in a tightly contested auction, outbidding the Adani Group with an overall offer of Rs 17,000 crore, which equates to Rs 12,505 crore in net present value terms. The payment structure includes an upfront settlement of around Rs 3,800 crore, followed by annual instalments of Rs 2,500–3,000 crore over the next five years. Other rivals, such as Dalmia Bharat Group, Jindal Power, and PNC Infratech, did not submit final bids in the concluding round.
JAL’s financial distress has been accentuated by its protracted insolvency proceedings and attempts at debt restructuring. The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor group, whose admitted claims stand at over Rs 59,000 crore. Lenders face a potential haircut of approximately 71 per cent based on Vedanta’s bid, highlighting the scale of losses already absorbed by the financial system. The CCI also granted permission for other major groups to submit resolution plans, although none matched Vedanta’s final offer.
Credit analysts have reacted with caution to Vedanta’s acquisition strategy, expressing reservations about the transaction’s impact on the company’s financial profile. CreditSights, a Fitch Group firm, categorised the acquisition as “credit negative” for both Vedanta Limited and its parent, Vedanta Resources Limited, citing the heavy debt load and weak operating performance of JAL. In its assessment, CreditSights stated: "We view the acquisition as credit negative for VEDL and (its parent) Vedanta Resources Ltd considering JAL's heavy debt stack, deteriorating earnings, and little strategic synergistic rationale (in our view)."
The CreditSights report further highlighted the risks associated with Vedanta’s entry into cyclical and capital-intensive industries, such as real estate, cement, and infrastructure, which are outside its traditional mining and metals sectors. The note also flagged execution challenges, referencing Vedanta’s continued "aggressive capex and expansion appetite."
S&P Global Ratings also observed that most of JAL’s current operations are loss-making and would likely require substantial capital investment to revive margins. The agency commented that Vedanta’s ability to improve these assets is a key determinant for the overall success and value realisation of the acquisition.
The CCI’s clearance is a critical procedural step, but much will depend on Vedanta’s ability to manage the transition and deliver on its commitments amid continued market scrutiny.
Vedanta Limited has received the green light from the Competition Commission of India (CCI) to acquire Jaiprakash Associates Limited (JAL) for approximately Rs 17,000 crore under the Insolvency and Bankruptcy Code (IBC) process. This marks a significant development in Vedanta’s bid to expand beyond its core mining and metals operations into sectors such as cement, real estate, and infrastructure.
JAL, once the flagship of the Jaypee Group, has faced mounting financial distress, with creditors’ claims totalling nearly Rs 59,000 crore. The acquisition plan features a combination of upfront and staggered payments, reflecting the complexity of the transaction. The CCI’s approval follows a competitive bidding round, positioning Vedanta as the highest bidder for the struggling conglomerate.
Vedanta emerged as the preferred bidder in a tightly contested auction, outbidding the Adani Group with an overall offer of Rs 17,000 crore, which equates to Rs 12,505 crore in net present value terms. The payment structure includes an upfront settlement of around Rs 3,800 crore, followed by annual instalments of Rs 2,500–3,000 crore over the next five years. Other rivals, such as Dalmia Bharat Group, Jindal Power, and PNC Infratech, did not submit final bids in the concluding round.
JAL’s financial distress has been accentuated by its protracted insolvency proceedings and attempts at debt restructuring. The National Asset Reconstruction Company Limited (NARCL), which acquired the group’s stressed loans from a State Bank of India-led consortium, now leads the creditor group, whose admitted claims stand at over Rs 59,000 crore. Lenders face a potential haircut of approximately 71 per cent based on Vedanta’s bid, highlighting the scale of losses already absorbed by the financial system. The CCI also granted permission for other major groups to submit resolution plans, although none matched Vedanta’s final offer.
Credit analysts have reacted with caution to Vedanta’s acquisition strategy, expressing reservations about the transaction’s impact on the company’s financial profile. CreditSights, a Fitch Group firm, categorised the acquisition as “credit negative” for both Vedanta Limited and its parent, Vedanta Resources Limited, citing the heavy debt load and weak operating performance of JAL. In its assessment, CreditSights stated: "We view the acquisition as credit negative for VEDL and (its parent) Vedanta Resources Ltd considering JAL's heavy debt stack, deteriorating earnings, and little strategic synergistic rationale (in our view)."
The CreditSights report further highlighted the risks associated with Vedanta’s entry into cyclical and capital-intensive industries, such as real estate, cement, and infrastructure, which are outside its traditional mining and metals sectors. The note also flagged execution challenges, referencing Vedanta’s continued "aggressive capex and expansion appetite."
S&P Global Ratings also observed that most of JAL’s current operations are loss-making and would likely require substantial capital investment to revive margins. The agency commented that Vedanta’s ability to improve these assets is a key determinant for the overall success and value realisation of the acquisition.
The CCI’s clearance is a critical procedural step, but much will depend on Vedanta’s ability to manage the transition and deliver on its commitments amid continued market scrutiny.