Vedanta has made a successful bid of ₹17,000 crore to acquire the debt-ridden Jaypee Associates (JAL), outbidding the Adani Group. JAL has a debt of approximately ₹57,185 crore. The company's key assets include real estate projects in NCR, hotels, cement units, and other infrastructure.
New Delhi: Mining sector giant Vedanta has surpassed the Adani Group by placing a bid of ₹17,000 crore for the acquisition of Jaypee Associates (JAL). The Allahabad NCLT had sent JAL into insolvency proceedings in June 2024, and the bidding process concluded in a meeting of the Committee of Creditors (COC) on September 5. JAL owes ₹57,185 crore in debt, while its assets include real estate projects in Noida, Greater Noida, and Jewar, hotels, cement units, and infrastructure properties.
NCLT referred JAL to insolvency proceedings
The Allahabad bench of the National Company Law Tribunal (NCLT) initiated the Corporate Insolvency Resolution Process (CIRP) for JAL on June 3, 2024. This step was taken due to the company's continuously mounting debt and its inability to repay it. Subsequently, the process of selling JAL under the Insolvency and Bankruptcy Code (IBC) commenced.
Vedanta's bid emerges victorious
According to sources, the Committee of Creditors (COC) adopted a challenge process for the sale of JAL. This process was completed in a meeting held on September 5. In this meeting, Vedanta placed a bid of ₹17,000 crore. However, its Net Present Value (NPV) was calculated at ₹12,505 crore. On the other hand, the Adani Group had also presented a claim, but Vedanta's bid proved superior, and the company won the acquisition race.
JAL owes over ₹57,000 crore
JAL is reported to have a total outstanding debt of ₹57,185 crore. The largest portion of this belongs to the 'National Asset Reconstruction Company Limited' (NARCL), which had acquired a significant part of JAL from the lender consortium led by the State Bank of India. Due to such substantial debt, several companies had shown interest in JAL.
Several companies showed interest
In April 2024, approximately 25 companies had expressed interest in acquiring JAL. However, as the bidding process progressed, only five companies submitted their claims. These included Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power, and PNC Infratech. In the final stage, the competition narrowed down to just Vedanta and the Adani Group.
JAL's major projects
Jaypee Associates' assets include several significant projects across the country. The company has numerous large real estate projects in the National Capital Region (NCR). Prominent among these are JP Greens in Greater Noida, JP Greens Wish Town in Noida, and JP International Sports City located near the Jewar International Airport. These projects have been a subject of discussion for a long time, and their direction is expected to change with their acquisition by Vedanta.
Hotel and Real Estate Business
In addition to real estate, JAL has also had a b presence in the hotel business. The company operated five major hotels in Delhi-NCR, Mussoorie, and Agra. These hotels have long been a part of the JP Group's brand identity. However, the debt crisis has also impacted this business.
Cement and Mining Business
Jaypee Associates' business is not limited to real estate and hotels. The company owns four cement units in Madhya Pradesh and Uttar Pradesh. Additionally, the company has leased several limestone mines. However, production in its cement plants is currently suspended.
Stake in other companies
Jaypee Associates also holds significant stakes in its subsidiary companies. These include Jaypee Power Ventures Limited, Yamuna Expressway Tolling Limited, and JP Infrastructure Development Limited. Through investments in these companies, the JP Group had expanded its business operations.
