Vedanta Group wins Rs 17000 cr bid to buy Jaiprakash Associates, outbids Adani
Mining giant Vedanta Group has acquired Jaiprakash Associates (JAL) with a Rs 17000 crore bid, leaving behind fellow contender Adani Group. According to a PTI report, the mining conglomerate’s bid comes as JAL is undergoing insolvency proceedings after it defaulted on payment of loans. The bid value translates into JAL’s net present value of Rs 12,505 crore, the PTI report added.
The other contenders including Jindal Power, Dalmia Bharat Group, and PNC Infratech did not submit their bids in the final bidding round. Vedanta Group, led by Anil Agarwal, won the bid in a challenge round under the Insolvency and Bankruptcy Code (IBC). A challenge process is a competitive bidding round run by the Committee of Creditors (CoC) to maximise recovery from an insolvent company.
JAL – which has interests spanning real estate, cement, power, hotels, and roads – entered insolvency proceedings after defaulting on loan repayments. The National Company Law Tribunal (NCLT) Allahabad Bench admitted JAL to the corporate insolvency resolution process (CIRP) on June 3, 2024.
According to reports, creditors have lodged claims of over Rs 57000 crore. Vedanta’s winning bid covers less than a third of what lenders are owed by JP Associates.
CNBC had earlier reported that the National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India.
JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.
It also has three commercial/industrial office spaces in Delhi-NCR, while its hotel division has five properties in Delhi-NCR, Mussoorie, and Agra. The group has four cement plants in Madhya Pradesh and Uttar Pradesh, along with leased limestone mines in Madhya Pradesh, although the plants are currently non-operational. JAL also holds stakes in subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several others.
