Vedanta Bids ₹4000 Crore Upfront for Jaiprakash Associates: A Strategic Move

Mining major Vedanta Limited has proposed an upfront payment of ₹4,000 crore in its bid for the bankrupt Jaiprakash Associates Ltd (JAL), with the remaining balance to be paid over the next five to six years, according to a PTI report.

With this, the Anil Agarwal-owned mining conglomerate’s bid carries a net present value (NPV) of ₹12,505 crore in the auction conducted by lenders to find buyers for JAL. Vedanta emerged as the top bidder after outbidding rival Adani Group in a challenge auction conducted by lenders.

The offer, with an overall value of ₹17,000 crore and an NPV of ₹12,505 crore, is the highest recovery plan so far for the debt-laden JAL. However, given lenders’ admitted claims of more than ₹59,000 crore, banks will still be forced to take a haircut of around 71 per cent. The auction saw only Vedanta and Adani Group actively competing in the final round, despite other shortlisted bidders such as Dalmia Bharat, Jindal Power, and PNC Infratech qualifying earlier.

The Committee of Creditors (CoC), led by National Asset Reconstruction Company Ltd (NARCL), has identified Vedanta as the H1 bidder, though the resolution plan still requires approval through voting and subsequent clearance from the National Company Law Tribunal (NCLT). For Vedanta, acquiring Jaiprakash Associates marks a strategic entry into the cement and infrastructure sectors, where it has so far had no presence.

The Jaypee Group’s assets include real estate projects such as Jaypee Greens, Wish Town, and the International Sports City near Jewar airport, alongside cement plants, power assets, and land banks. The CoC has sought commitments from bidders to provide additional compensation if the ongoing dispute between JAL and the Yamuna Expressway Industrial Development Authority (YEIDA) over land allocation is resolved in the company’s favour. The matter is currently before the Supreme Court.

For Vedanta, the acquisition could reshape its portfolio and diversify its business beyond mining, oil, and metals, adding new verticals in cement, housing, and infrastructure. This move is expected to strengthen Vedanta’s position in the Indian market and provide a significant boost to its long-term growth strategy.