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Vedanta has emerged as the winner in the bidding process for Jaiprakash Associates (JAL), a debt-laden company with significant assets in the cement industry. Vedanta’s aggregate offer of ₹17,000 crore surpassed Adani Enterprises’ bid, with a net present value of ₹12,505 crore compared to Adani’s ₹12,005 crore. The winning bid was a result of a intense bidding process, with Vedanta raising its counteroffer after Adani initially emerged as the highest bidder.

The resolution process for JAL has been marked by delays and disputes, with the company owing creditors over ₹55,000 crore. The Committee of Creditors, led by the National Asset Reconstruction Co (NARCL), is expected to review and ratify the winning bid. NARCL controls over 90% of JAL’s debt, having acquired ₹55,000 crore of loans for ₹12,000 crore in cash and security receipts.

Vedanta, which does not currently own cement assets, will need to obtain antitrust approval for the deal. The company is primarily interested in JAL’s land parcels and may not be keen on growing the cement business. In contrast, Adani Group and Dalmia Bharat, both major players in the cement industry, had already obtained clearance from the Competition Commission of India for the acquisition.

The bidding process saw several other companies, including Jindal Power Ltd, Dalmia Bharat Ltd, and PNC Infratech Ltd, drop out or choose not to participate. Some bidders expressed concerns over the methodology used to set the reserve price for the auction and the lack of information and material for due diligence.

The outcome of the bidding process may still be subject to legal challenges, with the Jaiprakash Group promoters having previously indicated a willingness to settle dues with a ₹16,000 crore proposal. Vedanta’s takeover bid may be complicated by any potential legal challenges from the erstwhile promoters.

Vedanta’s acquisition of JAL will add to its existing portfolio of commodities, which includes aluminium, zinc, oil and gas, steel, and power. The company’s net debt has risen to ₹58,220 crore, and it is currently in the process of a demerger, with a hearing scheduled for September 17.