Dalmia and Adani emerge as leading contenders in the asset sale of Jaiprakash Associates; financial institutions are pushing for improved, unsolicited offers without conditions.
Adani Group and Dalmia Bharat Lead the Race in Second Round of Bids for Jaiprakash Associates Ltd.
The latest developments in the second round of revised bids for the assets of debt-ridden Jaiprakash Associates Ltd (JAL) have seen five bidders being asked to submit unconditional, revised resolution plans with definitive financial terms. The Committee of Creditors (CoC) has given a one-week deadline for these revised bids [1][3].
Key bidders in this process include:
- Adani Group: Offered ₹12,250 crore, including ₹3,500 crore upfront cash and ₹890 crore retained within JAL. Adani’s bid is considered the strongest because it is largely unconditional and does not depend on the disputed land issue [1][5]. They have sought Competition Commission of India approval for acquiring JAL and may take up to 100% shareholding [2].
- Dalmia Bharat: Made the highest nominal offer of ₹14,500 crore, but this includes ₹3,000 crore (full valuation of the disputed land); if the land claim is rejected, the bid value effectively drops to ₹11,500 crore [1]. Dalmia Bharat has reportedly secured a CCI approval for their resolution plan.
- Vedanta: Offered ₹13,500 crore, but the proposal is fully conditional on a favorable court verdict regarding the disputed land and other conditions [1].
- Jindal Steel & Power (JSPL): Proposed ₹11,000 crore, with ₹6,500 crore upfront and the rest conditional [1].
- PNC Infratech: Bid ₹10,240 crore, with ₹1,040 crore in cash, part over two years, and the remainder spread over a decade [1].
A significant legal complexity involves a land dispute over JAL’s 1,000-hectare Sports City project in Greater Noida, where land allotment was cancelled by the Yamuna Expressway Industrial Development Authority and upheld by the Allahabad High Court; this case is now pending at the Supreme Court [1]. Most bids except Adani’s are linked to the outcome of this pending case, which adds conditionality to their offers.
Jaiprakash Infratech also plans to legally challenge the rejection of its bid, which could further complicate the insolvency resolution process [5].
The portfolio includes marquee assets such as Jaypee Greens in Greater Noida, parts of Wishtown in Noida, Jaypee International Sports City, and multiple hotel assets in Delhi-NCR, Agra, etc. The assets also include land parcels along the Yamuna Expressway [1].
In summary, the lenders want unconditional bids for a clearer resolution, with the Adani Group having submitted the strongest unconditional offer so far, while others’ bids remain heavily conditional on legal outcomes related to land disputes [1][3][5].
The consortium of banks led by the State Bank of India (SBI) has transferred ₹12,700 crore worth of stressed loans belonging to JAL to National Asset Reconstruction Company Ltd (NARCL) [2]. Adanis have expressed a willingness to "aggressively bid", while another top player may revise their offers [3]. A second round of revised bids is expected from existing players, with submission by mid-August [1].
[1] The Economic Times, 2022. [2] Livemint, 2022. [3] Business Standard, 2022. [5] The Hindu, 2022.
- The banking sector is closely watching the second round of bids for Jaiprakash Associates Ltd, as several prominent businesses, including Adani Group and Dalmia Bharat, have submitted their revised resolution plans with unconditional financial terms.
- In the race for acquiring Jaiprakash Associates, Adani Group has presented a strong bid of ₹12,250 crore, which does not depend on the disputed land issue, securing them an edge in the industry.
- The finance industry is anticipating additional revised bids from existing players such as Vedanta, Jindal Steel & Power, and PNC Infratech, who have presented conditional offers dependent on the outcome of ongoing legal disputes.
- The infrastructure sector is eagerly awaiting the submission of unconditional, definitive bids, as the consortium of banks, led by the State Bank of India, looks forward to a clearer resolution process, bolstering the finance industry's confidence in the resolution of stressed assets.
