Race for JAL Intensifies as Adani, JSW, Vedanta Eye Multi-Billion Dollar Assets

The bidding war for Jaiprakash Associates Ltd (JAL) has intensified, with some of India’s largest business conglomerates throwing their hats in the ring.

Major players such as JSW, Dalmia Bharat, Jindal Power, Vedanta, GMR, Welspun, and Torrent have all submitted expressions of interest (EoIs) as JAL undergoes court-monitored insolvency proceedings as per the Economic Times report.

The Adani Group is also expected to join the race before the final submission deadline of March 25, along with another prominent industrial house based in Delhi. Kotak Alternate Assets is also reported to be among the interested parties, the report added.

Bidding for High-Value Assets

The assets up for acquisition are estimated to be worth over $2 billion (₹17,300 crore), making this one of the most closely watched insolvency cases in recent times.

The EoI process marks the initial step in the bidding procedure, with lenders looking to secure a new owner for JAL. However, industry insiders emphasise that not all entities submitting an EoI may necessarily follow through with final bids.

According to an exclusive ET report, the National Company Law Tribunal (NCLT) recently issued directives to the company’s resolution professional, Bhuvan Madan—supported by Deloitte—to seek resolution plans that encompass all of JAL’s assets rather than marketing them in separate clusters.

Initially, the approach was to attract buyers for individual assets categorised into distinct portfolios, but the NCLT has mandated a unified bidding strategy.

A Closer Look at JAL’s Assets

The company owns cement plants with a production capacity of 10 million tonnes per year, a 2,500-acre land parcel along the Noida Expressway, an EPC (engineering, procurement, and construction) business with high-value contracts, a fertiliser plant, and 5 hotels.

Additionally, it possesses the Buddh International Circuit in Greater Noida, a premier motorsport venue that has previously hosted Formula One races.

Lenders and Loan Assignments

JAL’s financial troubles have led to massive loan write-offs. A consortium of 25 lenders, including ICICI Bank, State Bank of India, Punjab National Bank, and IDBI Bank, assigned JAL’s outstanding loans amounting to approximately ₹48,000 crore to the National Asset Reconstruction Company Ltd (NARCL) on March 12.

The loans, which comprise principal, interest, and penalties accumulated over several years, were transferred for around ₹12,700 crore.

What Lies Ahead?

With the March 25 deadline fast approaching, all eyes are on the final bidders who will move forward in acquiring JAL’s assets. The outcome of this insolvency resolution will not only determine the future of JAL but could also reshape competition in sectors such as cement, infrastructure, and real estate.

As highlighted in the exclusive ET report, key industry players remain tight-lipped about their strategies, with companies like JSW, Vedanta, and JAL’s resolution professionals declining to comment. Other bidders, including Dalmia Bharat, Jindal Power, Welspun, Torrent, Adani, GMR, and Kotak Alternate Assets, have also refrained from making public statements regarding their interests.

Conclusion

As the deadline for final bids approaches, the competition for JAL’s assets is heating up. With major industry players like Adani, JSW, Vedanta, and others in the fray, the outcome of this insolvency process will have a significant impact on the cement, infrastructure, and real estate sectors.

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