Adani Enterprises Likely To Pip Vedanta To emerge Highest Bidder For Jaiprakash Associates

 Adani Enterprises Ltd is likely to emerge as the highest bidder to acquire Jaiprakash Associates Ltd (JAL) through insolvency process as its offers to pay acquisition amount in two years have been found better than Vedanta's bid to make payments in five years, sources said.

In early September, mining conglomerate Vedanta Group had beaten Adani Group to emerge as the highest bidder, with an offer of ₹12,505 crore as net present value (NPV), in an auction carried out by lenders to find suitors for JAL, whose interests span real estate, cement, power, hotels, and road.

Dalmia Cement (Bharat) Ltd, Jindal Power Ltd, and PNC Infratech Ltd did not bid in the auction process.

Later, the lenders held negotiations with these five players to enhance the bid value and maximise realisation.

On October 14, these five bidders submitted fresh signed resolution plans in sealed envelopes.

According to sources, the committee of creditors (CoC) of JAL met last week to deliberate on these comprehensive resolution plans and evaluate them for feasibility and viability.

The CoC evaluated the resolution plans on the basis of evaluation matrix and then scored the resolution plan of Adani Enterprise Ltd as the highest, followed by Dalmia Cement (Bharat) and then Vedanta Ltd,

they added.

Now, the resolution plan could be put to vote by the CoC in the next two weeks, sources said.

It is understood that the payments in Dalmia's plans are contingent upon the Supreme Court's judgement on the pending matter between the JAL and development authority YEIDA.

Adani Group is offering the payment to lenders within two years while Vedanta is offering back-ended payments over the next five years.

Last month, the erstwhile promoters of JAL also submitted their offer to settle with the lenders under 12A but they did not cite any clear source of funds, sources said.

Such offers are usually given with the intent to derail the resolution process, they added.

Earlier, the promoters raised objections to the process and tried to obtain a stay, which was not granted by the courts.

On the overall evaluation of the plans and treatment of all stakeholders, it is expected now that the CoC may vote for Adani Enterprises Ltd for resolution and turnaround of the JAL, sources said.

JAL, which has business interests spanning real estate, cement manufacturing, hospitality, and engineering & construction, was admitted into the Corporate Insolvency Resolution Process (CIRP) through the National Company Law Tribunal, Allahabad Bench, order dated June 3, 2024.

The JAL was taken to insolvency proceedings after the conglomerate defaulted on payment of loans.

Financial creditors' claim of around ₹60,000 crore has been admitted by the resolution professional. More than a thousand homebuyers are stuck in various projects of JAL.

The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring stressed JAL loans from a consortium of lenders headed by the State Bank of India (SBI).

In April this year, 25 companies showed interest in acquiring JAL. However, in June, JAL announced that it has received five bids, along with earnest money, for the acquisition of the company through insolvency process.

Adani Enterprises, Dalmia Cement, Vedanta Group, Jindal Power, and PNC Infratech had submitted bids to acquire JAL.

In September, the CoC conducted the challenge process, wherein Vedanta had emerged as the highest bidder.

JAL has major real estate projects like Jaypee Greens in Greater Noida, a part of Jaypee Greens Wishtown in Noida (both on the outskirts of the national capital), and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport.

It 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.

The financial stress and insolvency impacted JAL's businesses, including cement manufacturing units and EPC projects of national importance such as Pakal Dul Dam project in Jammu & Kashmir, Srisailam Canal project in Andhra Pradesh.