Adani Group has secured the majority lenders' vote for the takeover of debt-laden Jaiprakash Associates (JAL), with its Rs 14,535-crore acquisition proposal emerging ahead of rival bidders due to a higher upfront payment, sources said, reported PTI.
A Committee of Creditors (CoC) evaluated resolution plans submitted by Adani Group, Vedanta Ltd, and Dalmia Cement (Bharat). Adani received 89 per cent of the votes, followed by Dalmia Cement (Bharat) and Vedanta Group, according to sources.
The National Asset Reconstruction Company Ltd (NARCL) played a key role in the process, controlling about 86 per cent of the CoC's voting share.
A small group of lenders, including State Bank of India and ICICI Bank, which together account for less than 3 per cent of votes, abstained.
Sources said lenders favoured Adani’s plan primarily because it offered a substantially higher upfront payment compared to competing proposals.
The ports-to-energy conglomerate proposed a total plan value (TPV) of Rs 14,535 crore, including Rs 6,005 crore upfront and Rs 6,726 crore payable after two years. In net present value terms, the offer is estimated at Rs 12,000 crore.
Vedanta offered Rs 3,800 crore upfront and Rs 12,400 crore in deferred payments over five years, taking the TPV to Rs 16,726 crore.
When contacted, a Vedanta spokesperson said, “CoC voting is happening this week, and we trust that the CoC will take the best decision in public interest. Vedanta is a growth-oriented company, always looking for opportunities and synergy. Our approach remains disciplined, focus on value creation and long-term growth.”
Jaiprakash Associates, which has business interests across real estate, cement manufacturing, hospitality, power, and engineering & construction, entered the Corporate Insolvency Resolution Process (CIRP) in June last year after defaulting on loans aggregating Rs 57,185 crore.
JAL had announced in June that it had received five bids, including from Vedanta, Adani Enterprises, Dalmia Cement, Jindal Power, and PNC Infratech. In September, the CoC conducted an auction under the Swiss challenge process.
JAL’s major real estate projects include Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and Jaypee International Sports City near the upcoming Jewar International Airport.
The company also has three commercial and industrial office spaces in Delhi-NCR, and its hotel division operates five properties in Delhi-NCR, Mussoorie, and Agra.
In cement, JAL runs four plants in Madhya Pradesh and Uttar Pradesh and holds a few leased limestone mines in Madhya Pradesh.
It has investments in subsidiaries, including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, and Jaypee Infrastructure Development Ltd.
Sources said the CoC used an evaluation matrix to assess the resolution plans. Adani Enterprises’ plan received the highest score, followed by Dalmia Cement (Bharat) and Vedanta Ltd, reported PTI.
Payments in Dalmia’s plan are contingent upon the Supreme Court’s judgement on a pending matter between JAL and the Yamuna Expressway Industrial Development Authority (YEIDA).
Adani Group offered payments within two years, while Vedanta’s plan proposed back-ended payments over five years.
Earlier this year, 25 companies showed interest in acquiring JAL. By June, the company had shortlisted five bidders with earnest money for the insolvency process.
JAL’s financial stress and insolvency affected its businesses, including cement manufacturing and EPC projects such as the Pakal Dul Dam in Jammu & Kashmir and the Srisailam Canal project in Andhra Pradesh.