Vedanta beats Adani with Rs 17,000 cr bid to acquire Jaiprakash Associates

JAL — with interests in real estate, cement, power, hotels and roads — has been dragged into insolvency proceedings after defaulting on payment of loans

New Delhi: Mining conglomerate Vedanta on Friday beat Gautam Adani’s Group to make a winning bid for the acquisition of debt-ridden Jaiprakash Associates (JAL) for Rs 17,000 crore, according to sources.

The bid value translates into Jaiprakash Associates’ net present value of Rs 12,505 crore.

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JAL, which has interests in real estate, cement, power, hotels and roads, has been dragged into insolvency proceedings after it defaulted on payment of loans.

Lenders of JAL conducted a challenge process for the sale of the company under the IBC. Multiple bidders participated in the process, but in the end, firm bids were placed by only two entities, Adani and Vedanta Group.

Vedanta eventually made a winning bid of Rs 17,000 crore, which translated into a NPV (net present value) of Rs 12,505 crore, beating Adani Group, sources said.

The Committee of Creditors (CoC) meeting was held on September 5 to conduct the challenge process. Financial creditors have claimed a staggering Rs 57,185 crore in unpaid dues.

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.

Adani Group, Dalmia Bharat, Vedanta Group, Jindal Power and PNC Infratech had submitted bids to acquire JAL. JAL was admitted to the corporate insolvency resolution process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024. It was taken to insolvency proceedings after the conglomerate defaulted on the payment of loans.

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. JAL has four cement plants in Madhya Pradesh and Uttar Pradesh, and a few leased limestone mines in Madhya Pradesh. The cement plants, however, are non-operational.

It also has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and several other companies.