New Delhi: The Adani Group has submitted a Rs. 12,600 crore unconditional bid for the bankrupt Jaiprakash Associates (JAL) as part of its insolvency proceedings. Other bidders, including Dalmia Bharat, Vedanta, Jindal Power and PNC Infratech, have placed conditional bids tied to the resolution of a critical land dispute in UP pending before the Supreme Court.
Once considered a major infrastructure and real company, JP Associates has faced mounting issues over the years, including a total debt burden of Rs. 55,493 cr along with a slew of court cases by buyers waiting to get possession of their homes. The company’s shares once reached an all-time high of Rs.300, which has now dropped to Rs.3 today.
Out of the 5 bids being evaluated, Dalmia Bharat’s bid is the most attractive with Rs.14,600 cr, provided the disputed land parcel is resolved. Without that, the effective bid would be Rs.12,600 cr, matching Adani’s unconditional offer. Vedanta has placed a Rs.12,500 cr bid while Jindal Power’s bid is worth Rs.10,300 cr. PNC Infratech has submitted the lowest bid of Rs.9,500 cr.
As the flagship firm of the Jaypee Group, Jayprakash Associates have business interests in real estate, hotels, cements, sports facilities and power generation.
For Adani, the potential acquisition could help bolster its recently acquired cement business, which is the second-largest in India. The company operates 4 cement plants in Uttar Pradesh and Madhya Pradesh along with 12 leased limestone mines in Madhya Pradesh.
If Adani wins the bid, the company will have to address the owners of the various incomplete real estate projects in Noida, as well as the UP land parcel case.
After the news broke, JP Associate’s shares hit a 5% upper circuit.
