Vedanta beats Adani to acquire Jaiprakash Associates in ₹17,000 crore IBC process: Report

Mining conglomerate Vedanta beat Gautam Adani’s Group to make a winning bid for the acquisition of debt-ridden Jaiprakash Associates (JAL) for ₹17,000 crore, PTI reported citing sources. The bid value translates into Jaiprakash Associates’ net present value (NPV) of ₹12,505 crore.

Jaiprakash Associates, which has interests in real estate, cement, power, hotels and roads, was dragged into insolvency proceedings after defaulting on loan repayments.

Its lenders conducted a challenge process for the sale under the Insolvency and Bankruptcy Code (IBC). Multiple bidders participated, but firm offers eventually came only from Adani Group and Vedanta. Vedanta’s winning bid of ₹17,000 crore, with an NPV of ₹12,505 crore, edged out Adani, the report added.

The Committee of Creditors (CoC) meeting on September 5 oversaw the challenge process. Financial creditors have claimed unpaid dues of ₹57,185 crore. The National Asset Reconstruction Company Ltd (NARCL), which acquired JAL’s stressed loans from a consortium led by State Bank of India, is the largest claimant.

Earlier this year, 25 companies had expressed interest in acquiring JAL. By June, five bidders — Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power and PNC Infratech — submitted offers with earnest money.

The Allahabad bench of the National Company Law Tribunal admitted JAL into the corporate insolvency resolution process (CIRP) on June 3, 2024.

JAL’s portfolio includes marquee real estate projects such as Jaypee Greens in Greater Noida, part of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport. It also owns three commercial spaces in Delhi-NCR and five hotels across Delhi-NCR, Mussoorie, and Agra.

In cement, JAL has four non-operational plants in Madhya Pradesh and Uttar Pradesh, alongside leased limestone mines in Madhya Pradesh. The group also holds stakes in subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.

Separately, Jaypee Infratech Ltd, another group company, has already been acquired by Mumbai-based Suraksha Group through the insolvency process.