Adani group leads race to acquire Jaiprakash Associates with ₹12,500 cr bid

The Adani group has emerged the frontrunner to acquire Jaiprakash Associates Ltd (JAL), which is currently undergoing insolvency proceedings, with a bid of up to ₹12,500 crore, people familiar with the matter said on Thursday. The conglomerate has proposed more than ₹8,000 crore as an upfront payment without any preconditions, they said.

 

Rival bidder Dalmia group is also in the fray and is willing to top Adani’s offer — provided a key legal hurdle related to JAL’s Sports City project is resolved. The case is currently pending before the Supreme Court.

 

In March, the Allahabad High Court upheld a decision by the Yamuna Expressway Industrial Development Authority to cancel the 1,000-hectare land allotment for the Sports City project near New Delhi, dealing a blow to the company’s plans.

 

The Committee of Creditors (CoC), led by National Asset Reconstruction Company Ltd (NARCL), which acquired a significant portion of JAL’s loans from a consortium originally led by the State Bank of India, is expected to begin negotiations with the resolution applicants in the coming week, sources said.

 

Apart from the Adani group and Dalmia Bharat, three others including PNC Infrastructure, Vedanta and Jindal Steel & Power have submitted their resolution plans for JAL.

 

 

The total claims of creditors in Jaiprakash Associates, amount to over ₹59,000 crore.

 

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.

 

Incorporated in 1995, Jaiprakash Associates Limited total assets are over ₹36,140 crore with real estate having the largest share making of ₹19,119 crore. The total revenues of the company for FY24 was ₹6,568 crore.

 

The group structure of the company includes cement, expressway, infrastructure development, fertilisers, aviation business, and agriculture.

 

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

 

A source close to the development said that the CoC is not likely to opt for the cluster-wise resolution since the bids have come close to the expectations of lenders.

 

The Adani group has steadily expanded its presence across real estate, power, and port sectors through a flurry of acquisitions, many via auctions under the insolvency route. These include Karaikal Port, Korba West Power, Lanco Amarkantak Power, Coastal Energen, Dighi Port, Radius Developers, and two HDIL real estate projects in Mumbai.

 

A successful bid for Jaiprakash Associates auction would mark its entry into the NCR region, complementing its recent win in an auction to redevelop Mumbai’s Dharavi slum cluster.