Adani Leads Race For Jaiprakash Associates with Rs 14,000 Crore Bid
Adani Group’s Rs 14,000-Crore Bid Leads Race for Jaiprakash Associates in Insolvency Battle
The Adani Group has emerged as the frontrunner to acquire Jaiprakash Associates Ltd (JAL), a debt-laden flagship of the Jaypee Group, with a Rs 14,000-crore offer in ongoing insolvency proceedings, sources revealed. The bid, which includes an upfront payment of approximately Rs 11,000 crore, outpaces Dalmia Bharat’s Rs 11,000-crore offer, positioning Adani as the top contender among five bidders.
JAL, grappling with over Rs 57,000 crore in creditor claims, holds valuable assets across cement, power, real estate, and hospitality sectors, primarily in Delhi-NCR and Uttar Pradesh. Its cement business, a key attraction for Adani and Dalmia, includes four plants in Uttar Pradesh and Madhya Pradesh with a total capacity of 5.6 million metric tonnes per annum, supported by 12 leased limestone mines and a 279-megawatt captive thermal plant.
Other assets include a 26% stake in Jaiprakash Power Ventures, luxury hotels, and marquee real estate projects like Jaypee Greens and Jaypee International Sports City near the upcoming Jewar International Airport.
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Other bidders include Vedanta Group, Jindal Steel & Power, and PNC Infratech, while a bid from Suraksha Asset Reconstruction Company was rejected for not meeting creditor criteria. Major creditors, including State Bank of India, National Asset Reconstruction Company (NARCL), Punjab National Bank, ICICI Bank, and IDBI Bank, are now evaluating the bids, with a Committee of Creditors meeting scheduled for July 1 to negotiate final terms.
If offers fall short of expectations, creditors may opt to sell JAL’s assets individually rather than as a single entity, as mandated by the National Company Law Tribunal (NCLT).
The insolvency process, initiated on June 3, 2024, after JAL defaulted on loans, has drawn significant interest due to its diversified portfolio. However, the company’s decade-long financial distress, compounded by delays in projects like the Yamuna Expressway, has made this one of India’s most high-profile corporate resolutions. The outcome could reshape the NCR’s real estate and infrastructure landscape, with Adani’s aggressive bid signaling its ambition to bolster its cement and infrastructure dominance.
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