Adani, 4 others submit ₹10k-11k cr bids for Jaiprakash Associates

Five companies have submitted resolution plans for Jaiprakash Associates Ltd (JAL), the flagship company of the beleaguered Jaypee group, the company has said in a stock exchange filing. 

 

The Adani group, Vedanta, Jindal Steel & Power, Dalmia Bharat, and PNC Infratech are the final bidders and the offers range from ₹10,000 crore to ₹11,000 crore, said a source close to the development.

 

The committee of creditors (CoC) on Wednesday opened the bids and began evaluating the proposals, according to people familiar with the matter.

 

The Suraksha group, based in Mumbai, also submitted an offer via Jaypee Infratech but failed to provide a mandatory bank guarantee, leading to its disqualification, one of the sources said.

 

Suraksha had earlier won the race to acquire Jaypee Infratech, the real estate arm of the Jaypee group. 

 

“There is huge litigation risk as well as good assets in this company,” said a bidder.

 

Sources indicated if the final bids exceeded ₹11,000 crore, the CoC might avoid a piecemeal resolution of the group’s assets.

 

However, a recent circular from the Insolvency and Bankruptcy Board of India (IBBI) enabling a partial resolution and asset-specific bids has raised hopes of maximising recovery for creditors. 

 

The final decision will rest with the CoC, which is expected to select the most favourable proposal based on bid value and structure.

 

JAL is undergoing corporate insolvency proceedings with claims from financial creditors exceeding ₹57,000 crore.

 

The deadline for submitting resolution plans was extended to June 24.

 

National Asset Reconstruction Company Ltd (NARCL), which acquired a substantial portion of JAL’s loans from a State Bank of India-led consortium, is the largest financial claimant in the process.

 

A provisional list of 26 interested parties had earlier submitted expressions of interest, signalling a strong investor appetite for JAL’s diversified asset base. Its assets include a 26 per cent stake in Jaiprakash Power Venture.

 

The outcome of the bidding process could reshape the ownership of one of India’s most ambitious but debt-laden infrastructure conglomerates.

 

JAL entered the insolvency process on June 3 last year. The company’s assets span cement, construction, hospitality, and real estate, including marquee developments such as Jaypee Greens in Greater Noida, Jaypee Wish Town in Noida, and Jaypee International Sports City near the upcoming Jewar International Airport. 

In the race 

-  Adani group, Vedanta, Jindal Steel & Power, Dalmia Bharat, and PSP Projects are the final bidders

  -  JAL was admitted into corporate insolvency on June 3, 2024

  -  Lenders claims exceed ₹57,000 crore

  -  NARCL is largest financial creditor, having acquired loans from an SBI-led consortium