Vedanta Secures Jaiprakash Associates with Rs 4000 Crore Upfront Payment
Vedanta Ltd has emerged as the highest bidder for the debt-ridden Jaiprakash Associates Ltd (JAIL), offering a net present value of Rs 12,505 crore. The payment will be staggered, with Rs 4,000 crore paid post-NCLT approval and the rest over 5-6 years. This acquisition complements Vedanta's existing businesses in power, real estate, and mining.
VedantaJaiprakash AssociatesNcltCirpNet Present ValueReal Estate NewsSep 07, 2025
Mining conglomerate Vedanta Ltd in its winning bid for debt-laden Jaiprakash Associates Ltd (JAIL) has offered Rs 4,000 crore payment post approval by NCLT and the balance amount over the next 5-6 years, sources said. Vedanta beat Adani Group with a bid whose net present value comes to Rs 12,505 crore in an auction carried out by lenders to find suitors for JAL, whose interests span real estate, cement, power, hotels, and roads.
JAL is undergoing CIRP under the IBC process, and the Resolution Professional invited Resolution Plans on June 24. As part of the same process, a challenge process was conducted among the five bidders (Vedanta, Adani, Dalmia, Jindal Power, and PNC Infratech), wherein Vedanta emerged as the H1 bidder at the NPV value of Rs 12,505 crore.
Sources said Vedanta was identified as the H1 bidder for Jaiprakash Associates Limited (JAL) by the NARCIL-led Committee of Creditors (CoC). The entire pay-out is expected to be made in a staggered manner, with the first part of the payment around Rs 4,000 crore post NCLT approval. This could take approximately a year, and the timeframe for the remaining payment would be around 5-6 years.
Given that the entire pay-out is staggered over 5-6 years, it will be funded by Vedanta's balance sheet and supported by corporate debtor's (JAL) internal accruals, without any overdependence on Vedanta's balance sheet alone, which generates free cash flows. Though Vedanta has been identified as H1, the CoC is yet to conclude the process and vote on the successful resolution plan, which is estimated to take another four to eight weeks. Post this, implementation of the plan will take another three to four months.
JAL has an unpaid outstanding of Rs 55,371.21 crore as of August 15, according to a stock exchange filing of the company. Vedanta emerged as the H1 bidder by offering a payment of Rs 12,505 crore based on a Net Present Value (NPV) basis. In auction processes like this, where the payment terms are staggered over the next few years, the offered amount is measured on NPV method, as that is a capital budgeting technique that evaluates the profitability of a project or investment by comparing the present value of future cash inflows to the current cost of the investment, also known as 'time value of money' in accounting terms.
JAL, which has five key verticals (power, real estate, cement, hotels, and EPC), complements Vedanta's businesses such as power (already present and has a sizable portfolio including Talwandi Sabo and Meenakshi Energy). Vedanta will realize its synergies in JAL's assets through its experience in metals, mining, and power and will also tap the potential of JAL's limestone and coal mines. Further, once Vedanta's power business is demerged, the power business from JAL will add heft to it. The real estate assets also have development potential through partnerships.
Frequently Asked Questions
What is the total bid amount offered by Vedanta for Jaiprakash Associates Ltd?
Vedanta Ltd has offered a net present value of Rs 12,505 crore for Jaiprakash Associates Ltd (JAIL).
How will the payment be structured?
The payment will be staggered, with Rs 4,000 crore paid post-NCLT approval and the balance over 5-6 years.
What are the key verticals of Jaiprakash Associates Ltd?
Jaiprakash Associates Ltd has five key verticals: power, real estate, cement, hotels, and EPC (Engineering, Procurement, and Construction).
Why is the acquisition beneficial for Vedanta?
The acquisition complements Vedanta's existing businesses and leverages JAL's assets in power, real estate, and mining, providing synergies and development potential.
What is the current outstanding debt of Jaiprakash Associates Ltd?
Jaiprakash Associates Ltd has an unpaid outstanding of Rs 55,371.21 crore as of August 15, according to a stock exchange filing of the company.
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