NEW DELHI: The Adani Group, led by billionaire Gautam Adani, has requested the Competition Commission of India (CCI) for approval to acquire Jaiprakash Associates Ltd (JAL).
This move follows an unconditional bid made by the Adani Group for the financially troubled JAL, currently undergoing a corporate insolvency resolution process (CIRP).
The notice submitted to the CCI states, “The proposed acquisition pertains to owning up to 100% of the shareholding in Jaiprakash Associates Ltd by Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd or any related entity within the Adani Group.”
Adani Enterprises Ltd (AEL) is the leading company of the Adani Group based in Gujarat. JAL is involved in various sectors including engineering, construction, cement, power, real estate, and hospitality.
According to the notice, AEL, Adani Infrastructure and Developers, and JAL concluded that their “proposed combination does not pose any competition concerns in any potential relevant market and that the relevant market delineations may be left open.”
They also identified potential vertical linkages involving products and services like limestone, fly ash, clinker, coal management services, ready mix concrete, and construction activities pertinent to the cement manufacturing market. The notice asserts that “these vertical linkages do not present any competition concerns.”
Last month, Dalmia Cement (Bharat) Ltd also filed a notice with the CCI to acquire 100% ownership of JAL, including its assets and associated shareholding in subsidiaries, joint ventures, and affiliate companies.
Earlier, JAL’s lenders rejected Jaypee Infratech’s request to accept its resolution plan to acquire the distressed company.
Five companies—Adani Enterprises, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech—have put forward their resolution plans to acquire JAL, which was admitted to CIRP by the National Company Law Tribunal, Allahabad Bench, on June 3, 2024.
JAL entered insolvency proceedings after defaulting on loan repayments, with creditors claiming a staggering ₹57,185 crore. The National Asset Reconstruction Company Ltd (NARCL) is leading the list of claimants after purchasing the stressed JAL loans from a consortium of lenders, led by the State Bank of India (SBI).
JAL is known for major real estate projects including Jaypee Greens in Greater Noida, parts of Wishtown in Noida, and the Jaypee International Sports City, located near the future Jewar International Airport.
It also manages three commercial office spaces in Delhi-NCR and five hotel properties located in Delhi-NCR, Mussoorie, and Agra.
JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, though these plants are currently non-operational, as well as leased limestone mines in Madhya Pradesh. Additionally, it holds investments in various subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.
Meanwhile, the Jaypee Group’s Jaypee Infratech was acquired by Mumbai-based Suraksha Group through an insolvency process, and Suraksha is in the process of completing various stalled projects, totaling around 20,000 apartments in Noida and Greater Noida.
