Vedanta successfully bids Rs 17,000 crore for Jaypee Group, leaves Adani behind
Mining sector giant Vedanta has successfully bid Rs 17,000 crore to acquire debt-ridden Jaiprakash Associates (JAL) overtaking Adani Group. Sources gave this information on Friday. Sources said that Vedanta’s bid amount is Rs 17,000 crore but considering the current price and future money, its net present value (NPV) comes to Rs 12,505 crore. Jaypee Associates has been doing business in real estate, cement, energy, hotels and road projects. But due to heavy debt burden and failure to repay the loan, the company had to face the bankruptcy process.
NCLT sent Jaypee Associates to CIRP in June 2024
The Allahabad bench of the National Company Law Tribunal (NCLT) sent Jaypee Associates to the Corporate Insolvency Resolution Process (CIRP) on June 3, 2024. Sources said that the Committee of Creditors (COC) of JAL adopted the challenge process under the Insolvency and Bankruptcy Code (IBC) for the sale of the company. The challenge process was completed in the meeting of the Committee of Creditors held on September 5. In this, Vedanta won the bid, leaving behind the second contender Adani Enterprises. Sources said that Vedanta made a successful bid of Rs 17,000 crore. With this, the net present value of the bid became Rs 12,505 crore and Adani Group was left behind.
JAL claims a total of Rs 57,185 crore as dues
Financial lenders have claimed a total of Rs 57,185 crore as dues on JAL. The biggest claim among these is of ‘National Asset Reconstruction Company Limited’ (NARCL), which has bought the company’s debt from the lender group led by State Bank of India. In April this year, 25 companies had shown interest in acquiring JAL. However, in June, the company said that it had received 5 bids and advances for the acquisition through the bankruptcy process. These 5 claimants included Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power and PNC Infratech.
Major projects of Jaypee Group
However, at the end of the bidding process, only Adani Group and Vedanta had made solid bids. JAL’s assets include several large real estate projects located in the National Capital Region (NCR). These include Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida and Jaypee International Sports City near Jewar International Airport. The company’s portfolio also includes 5 hotels operating in Delhi-NCR, Mussoorie and Agra.
The company also has property in Madhya Pradesh and Uttar Pradesh
Apart from this, JAL also has 4 cement units and some leased limestone mines in Madhya Pradesh and Uttar Pradesh. However, work in its cement plants is currently closed. JAL also has investments in many companies including its subsidiary units – Jaiprakash Power Ventures Limited, Yamuna Expressway Tolling Limited and Jaypee Infrastructure Development Limited. Jaypee Infratech Limited, another company of Jaiprakash Group (Jaypee Group), has already been acquired by Mumbai-based company Suraksha Group through the insolvency resolution process.
