Vedanta has beaten Adani Group to acquire debt-ridden Jaiprakash Associates (JAL), in a Rs 17,000 crore bid, says a PTI report. The bid value translates into Jaiprakash Associates’ net present value of Rs 12,505 crore.
As per the report, multiple companies participated in the bidding process for JAL and Vedanta and Adani Group were the only two companies to place firm bids.
The companies that participated in the bidding also include Dalmia Bharat, Jindal Power and PNC Infratech.
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.
Jaiprakash Associates’ insolvency resolution
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. The company’s creditors have claimed a staggering Rs 57,185 crore in unpaid dues.
The Committee of Creditors meeting was held on September 5 to conduct the challenge process. The National Asset Reconstruction Company Ltd is leading the list of claimants after acquiring the debt-ridden JAL loans from a consortium of lenders headed by the State Bank of India.
JAL’s businesses
JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida and the Jaypee International Sports City, located near the upcoming Jewar International Airport.
The company 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.