NEW DELHI: Mining giant Vedanta has outbid Gautam Adani’s Group to acquire the financially troubled Jaiprakash Associates (JAL) for Rs 17,000 crore, as reported by sources.
This bid equates to an estimated net present value (NPV) of Rs 12,505 crore for JAL.
JAL operates in various sectors including real estate, cement, power, hotels, and road construction, but it has been subjected to insolvency proceedings following loan payment defaults.
The creditors of JAL initiated a competitive bidding process for the company’s sale under the Insolvency and Bankruptcy Code (IBC).
While several parties expressed interest, only Vedanta and Adani Group placed firm bids.
Vedanta’s successful offer of Rs 17,000 crore surpassed Adani’s bid, as per the sources.
A meeting of the Committee of Creditors (CoC) was convened on September 5 to oversee the bidding process.
Financial creditors have reported claims amounting to an astonishing Rs 57,185 crore in unpaid loans.
The National Asset Reconstruction Company Ltd (NARCL) ranks among the primary claimants, having acquired JAL’s distressed loans from a lender consortium led by the State Bank of India.
Earlier this year in April, up to 25 entities showed interest in acquiring JAL.
However, by June, JAL disclosed that it had received five earnest bids for the insolvency acquisition process.
Participants in this bidding included Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power, and PNC Infratech.
JAL was placed under the corporate insolvency resolution process (CIRP) by the National Company Law Tribunal in Allahabad on June 3, 2024, following a default on loan payments.
JAL possesses significant real estate projects including the Jaypee Greens in Greater Noida, and the Jaypee International Sports City near the upcoming Jewar International Airport.
Additionally, it has various commercial office spaces in Delhi-NCR and a hotel division with properties in Delhi-NCR, Mussoorie, and Agra.
JAL also operates four cement plants in Madhya Pradesh and Uttar Pradesh, although these plants are non-operational. It has investments in subsidiaries like Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd, among others.
Another division of the Jaypee Group, Jaypee Infratech Ltd, has already been sold to Mumbai-based Suraksha Group through an insolvency process.
