Vedanta outbids Adani with Rs17,000-cr offer for debt-laden Jaiprakash Associates report

Mining and oil exploration major Vedanta Group has offered to acquire debt laden Jaiprakash Associates Ltd (JAL) with an offer of Rs17,000 crore, outbidding Adani Group, reports citing sources said on Friday.

JAL is undergoing insolvency proceedings under the IBC with financial creditors claiming Rs56,185 crore in unpaid loans. The company defaulted on loan repayments leading to the IBC process. 

The offer came in response to a bid challenge carried out by the Committee of Creditors (CoC) for the sale of the company under the insolvency process. The bid challenge, carried out on 5 September, saw participation by several bidders besides the Vedanta and Adani groups. 

While 25 companies had shown interest in acquiring JPL, only five of them submitted final bids along with earnest money. However, only Vedanta and Adani groups placed firm bids that saw Vedanta outbidding Adani with the Rs17,000 crore offer.

The Vedanta offer values Jaiprakash Industries Ltd, the flagship of the Jaypee Group, at a net Rs12,505 crore.

Jaiprakash Associates operates across various business verticals, including real estate, cement, hospitality, and engineering and construction. The group, however, came under financial stress and defaulted on loan repayments., leading to corporate insolvency resolution process (CIRP).

The Allahabad bench of the National Company Law Tribunal, through an order dated 3 June 2024, placed Jaiprakash Associates under the IBC process.

Financial creditors, led by the National Asset Reconstruction Company Ltd (NARCL) have claimed Rs57,185 crore in unpaid dues from JPL. NARCL acquired the stressed JAL loans from a consortium of lenders led by the State Bank of India.

JAL’s major real estate projects include Jaypee Greens in Greater Noida, which is a part of Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City, located near the upcoming Jewar International Airport. It also owns three commercial spaces in Delhi-NCR, besides five hotels located in Delhi-NCR, Mussoorie, and Agra.

JAL has four non-operational cement plants in Madhya Pradesh and Uttar Pradesh, besides limestone leases in Madhya Pradesh. 

JAL has also invested in subsidiaries such as Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, etc.