Adani Group Secures 89% Creditor Support for Jaiprakash Associates Acquisition with Rs 14,535 Crore Proposal

New Delhi:

Adani Group has secured majority lenders' approval for the acquisition of debt-laden Jaiprakash Associates, with its Rs 14,535-crore proposal featuring a higher upfront payment compared to competing bidders, according to sources.

The Committee of Creditors evaluated resolution plans submitted by multiple suitors including Adani Group, Vedanta Ltd, and Dalmia Cement (Bharat).

Adani received overwhelming support with 89 percent of creditor votes, outperforming both Dalmia Cement (Bharat) and Vedanta Group in the process.

The National Asset Reconstruction Company Ltd (NARCL) played a decisive role, controlling approximately 86 percent of the Committee of Creditors' voting share. A small group of lenders, including State Bank of India and ICICI Bank, representing less than 3 percent of total voting power, abstained from the voting process.

Sources indicated that lenders preferred Adani's plan primarily due to its substantially higher upfront payment compared to rival proposals. The conglomerate's total plan value of Rs 14,535 crore includes Rs 6,005 crore as immediate payment and Rs 6,726 crore payable after two years. In net present value terms, the offer amounts to approximately Rs 12,000 crore.

Vedanta's competing offer comprised Rs 3,800 crore as upfront payment and Rs 12,400 crore in deferred payments spread over five years, bringing its total plan value to Rs 16,726 crore.

When approached for comment, a Vedanta spokesperson stated, "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 (JAL), with its high-quality assets and diverse business interests across real estate, cement manufacturing, hospitality, power, and engineering & construction, entered the Corporate Insolvency Resolution Process (CIRP) in June last year following default on loan payments totaling Rs 57,185 crore.

In June, JAL announced receiving five bids with earnest money from Vedanta, Adani Enterprises, Dalmia Cement, Jindal Power, and PNC Infratech. The CoC conducted an auction using the Swiss challenge process in September.

JAL possesses significant real estate developments including Jaypee Greens in Greater Noida, portions of Jaypee Greens Wishtown in Noida (both near the national capital), and the Jaypee International Sports City, advantageously located near the upcoming Jewar International Airport.

The company also owns three commercial/industrial office spaces in Delhi-NCR, while its hospitality division operates five properties across Delhi-NCR, Mussoorie, and Agra. JAL's assets include four cement plants in Madhya Pradesh and Uttar Pradesh, along with several leased limestone mines in Madhya Pradesh. Additionally, it holds investments in subsidiaries including Jaiprakash Power Ventures Ltd, Yamuna Expressway Tolling Ltd, Jaypee Infrastructure Development Ltd, and various other companies.

Sources revealed that the CoC evaluated resolution plans based on a specific evaluation matrix. Adani Enterprise Ltd's plan received the highest score, followed by Dalmia Cement (Bharat) and Vedanta Ltd.

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

Adani Group commits to making payments to lenders within two years, while Vedanta's offer features back-ended payments distributed over the next five years.

Earlier in April this year, 25 companies expressed interest in acquiring JAL. By June, however, JAL announced receiving bids from just five companies with earnest money for acquisition through the insolvency process.

Financial stress and insolvency have significantly impacted JAL's operations, including cement manufacturing facilities and EPC projects of national importance such as the Pakal Dul Dam project in Jammu & Kashmir and the Srisailam Canal project in Andhra Pradesh.

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