JP Associates Stake Sale: Here’s How Conditional and Unconditional Bids Have Left Creditors in Dilemma

JaiPrakash Associates stake sale race has left the committee of creditors (CoC) in dilemma. While Adani Enterprises has submitted an unconditional bid to take over the insolvent real estate-to-cement, others like Jindal Power, Dalmia Cement, and Vedanta have proposed a conditional bid. On the other hand, the billionaire Gautam Adani-led group has submitted a ₹12,600 crore bid, whereas others in the race have proposed to pay as high as ₹14,000 crore.  

According to the debt resolution process, CoC is required to assess equally placed bids, but the mismatch in the nature of the proposal has left lenders confused, the Economic Times reported. Now the deadlock can reportedly be broken only if another unconditional bid is proposed.

Adani Enterprises’ bid to acquire the debt-ridden conglomerate is the strongest, as it’s not linked to the ongoing land dispute resolution, whereas others have put conditions that are based on the outcome of the contested property, ET reported. 

The Dalmia Bharat is leading the bidding race with ₹14,600 crore, and others like Vedanta, Jindal Power, and PNC Infratech have reportedly offered ₹12,500 crore, ₹10,300 and ₹9,500 crore, respectively. 

The CoC, however, is not restricted from choosing an unconditional bid in the absence of other such bids according to the insolvency and bankruptcy code (IBC). 

 The committee of lenders, which is represented by the National Asset Reconstruction Company, is reportedly likely to seek clarifications from the competing bidders regarding the nature of their bids this week. Consequently, if the deadlock is resolved, the CoC would move forward with a challenge auction via electronic bidding. The lenders committee might also choose a Swiss challenge method wherein the highest offer becomes the base price for bidding. 

The real estate-to-cement conglomerate had entered the insolvency process following an order by the National Company Law Tribunal (NCLT) in June 2024 and appointed Bhuvan Madan as the resolution professional (RP).