Adanis, JSW, Vedanta among 26 bidders in race for Jaiprakash Associates assets

Jaiprakash Associates Limited (JAL), the flagship company of the Jaypee Group, is at the centre of one of India’s most high-profile corporate insolvency cases, drawing interest from a wide array of potential bidders. At least 26 prominent entities, including some of India’s largest conglomerates such as the Adani Group, JSW Group, Welspun, Vedanta Group, as well as Oberoi Realty, Dalmia Bharat, and Oaktree Capital, are likely to submit Expressions of Interest (EOIs) to acquire the debt-laden company under the Insolvency and Bankruptcy Code (IBC), according to media reports.

The deadline for submission of EOIs closed on March 25. Given the scale and strategic importance of JAL’s assets across multiple sectors and the large debt at stake, the bidding process is set to be one of the most closely watched corporate resolutions in India’s recent history.

Jaiprakash Associates, a key entity within the Jaypee Group, has business interests spanning real estate, cement manufacturing, hospitality, and engineering & construction. However, financial distress has plagued the conglomerate, with creditors making claims totaling a staggering ₹57,185 crore under the IBC.

The National Asset Reconstruction Company Limited (NARCL) leads the list of claimants after acquiring the stressed JAL loans from a consortium of lenders headed by the State Bank of India (SBI).

In the financial year 2023-24, real estate contributed 14% to JAL’s turnover and included significant developments such as Jaypee Greens in Greater Noida, Jaypee Greens Wishtown in Noida, and the Jaypee International Sports City, strategically located near the upcoming Jewar International Airport. JAL also has three commercial and industrial office spaces in the Delhi NCR region. The company’s hotel business division operates five properties in locations including Delhi NCR, Mussoorie, and Agra.

JAL’s cement plants and infrastructure projects further enhance its attractiveness as an acquisition target. The company currently owns four cement plants and several leased limestone mines located in Madhya Pradesh. However, these cement plants are presently non-operational. JAL has a total cement and captive thermal power capacity of 5.15 million tonnes per annum (MTPA) and a clinker capacity of 3 MTPA.

Additionally, JAL has made investments in subsidiaries including Jaiprakash Power Ventures Limited (with a book value of investment of ₹1,607.58 crore as per the annual report for FY 2024), Yamuna Expressway Tolling Limited, Jaypee Infrastructure Development Limited, and several other companies.

A recent ruling by the National Company Law Tribunal (NCLT) mandates that JAL must be sold as a single entity rather than being broken up into separate business clusters. As a result, EOIs can only be submitted for the company in its entirety, which may deter participation from players interested only in specific assets, according to banking sources.

With the EOI deadline now closed and competition intensifying, the focus shifts to the next stage of the resolution process. While over two dozen suitors have shown interest, the key question remains how many will proceed with serious bids when the next round of the insolvency process begins.

Also See: Assets of Jaiprakash Associates up for grabs under insolvency process