Vedanta Outbids Adani Group with Rs 17,000 Crore Offer for Jaiprakash Associates

Vedanta has successfully outbid the Gautam Adani Group to acquire Jaiprakash Associates (JAL) for Rs 17,000 crore, according to sources. The acquisition translates to a net present value of Rs 12,505 crore for JAL. The company, involved in sectors like real estate and cement, faced insolvency proceedings due to loan defaults. A challenge process was conducted by JAL's lenders under the Insolvency and Bankruptcy Code (IBC).

In April, 25 companies expressed interest in acquiring JAL. By June, five bids were submitted with earnest money. The bidders included Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power, and PNC Infratech. Ultimately, only Adani and Vedanta placed firm bids. Vedanta's offer of Rs 17,000 crore emerged victorious over Adani's bid.

Debt and Insolvency Proceedings

Financial creditors have claimed Rs 57,185 crore in unpaid dues from JAL. The National Asset Reconstruction Company Ltd (NARCL) is the leading claimant after acquiring stressed loans from a consortium led by the State Bank of India. JAL entered the corporate insolvency resolution process (CIRP) through an order by the National Company Law Tribunal, Allahabad Bench, on June 3, 2024.

JAL's insolvency proceedings were initiated after it defaulted on loan payments. The Committee of Creditors (CoC) held a meeting on September 5 to conduct the challenge process. Despite multiple bidders participating initially, only two firms placed final bids: Adani and Vedanta.

JAL's Assets and Investments

JAL owns significant real estate projects such as Jaypee Greens in Greater Noida and Jaypee International Sports City near Jewar International Airport. It also has three commercial office spaces in Delhi-NCR and five hotel properties in Delhi-NCR, Mussoorie, and Agra.

The company operates four cement plants in Madhya Pradesh and Uttar Pradesh, although they are currently non-operational. Additionally, JAL holds investments in subsidiaries like Jaiprakash Power Ventures Ltd and Yamuna Expressway Tolling Ltd.

Another entity within the Jaypee Group, Jaypee Infratech Ltd, has already been acquired by Mumbai-based Suraksha Group through an insolvency process. This acquisition highlights ongoing restructuring efforts within the conglomerate.

With inputs from PTI