Vedanta Outbids Adani with ₹17,000 Crore for Jaiprakash Associates

Vedanta Limited has emerged as the highest bidder for Jaiprakash Associates, which is undergoing insolvency proceedings.

Vedanta’s bids surpassed that of the Adani Group with a total offer of ₹17,000 crore. The deal includes an upfront payment of ₹4,000 crore, with the rest spread over five to six years, translating to a net present value of ₹12,505 crore, as per PTI report.

This marks the highest recovery plan for JAL, though lenders face a 71% haircut.

Vedanta and Adani Face Off as Other Bidders Stay Away

The auction, conducted by JAL’s lenders, saw only Vedanta and the Adani Group competing in the final round, while other interested parties, including Dalmia Bharat Group, Jindal Power, and PNC Infratech, chose not to participate.

The lenders had set the reserve price for the open challenge round at ₹12,000 crore.

Despite the significant offer, lenders will still face a substantial haircut of around 71%, as JAL’s admitted claims stand at over ₹59,000 crore under the Insolvency and Bankruptcy Code (IBC).

The claims are led by the National Asset Reconstruction Company Ltd (NARCL), which acquired the stressed JAL loans from a consortium of banks headed by State Bank of India (SBI).

Jaiprakash Associates Assets Under Scrutiny

Jaiprakash Associates, a flagship company of the Jaypee Group, has a diversified portfolio spanning real estate, cement manufacturing, hospitality, and engineering & construction. However, the company has been struggling with financial distress for several years. Lenders are seeking assurances from Vedanta and other suitors that additional payments would be made if disputes over JAL’s YEIDA land are resolved in the company’s favour.

Read More: YEIDA to Issue Fresh Leases in Jaiprakash Associates’ Sports City Project After Court Order.

Conclusion

With Vedanta’s successful bid, the mining major not only secures a significant acquisition but also positions itself to tap into JAL’s diversified asset base. This marks a notable development in India’s corporate restructuring landscape, highlighting the competitive dynamics among large conglomerates during distressed asset auctions.

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