Vedanta Wins Jaiprakash Associates Bid with ₹12,505 Crore NPV Offer
Vedanta Ltd has emerged as the highest bidder for Jaiprakash Associates Ltd (JAL) with a ₹12,505 crore NPV offer, beating Adani Group. The payment will be made in a staggered manner over 5-6 years, with an initial ₹4,000 crore payment post-NCLT approval.
VedantaJaiprakash AssociatesNpvCirpIbcReal Estate NewsSep 07, 2025
JAL, which has interests spanning real estate, cement, power, hotels, and roads, is currently undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC). The Resolution Professional invited Resolution Plans on June 24, and Vedanta emerged as the highest bidder (H1) at the NPV value of ₹12,505 crore.
The entire pay-out is expected to be made in a staggered manner. The first part of the payment, approximately ₹4,000 crore, will be made post-NCLT approval, which is expected to take around a year. The remaining amount will be paid over the next 5-6 years. Sources familiar with the bid terms noted that the payments will be funded by Vedanta’s balance sheet and supported by JAL’s internal accruals, without over-relying on Vedanta’s balance sheet alone.
Though Vedanta has been identified as the H1 bidder, the Committee of Creditors (CoC) led by NARCIL is yet to conclude the process and vote on the successful resolution plan. This is estimated to take another four to eight weeks. Post this, the implementation of the plan will require an additional three to four months.
JAL has an outstanding debt of ₹55,371.21 crore as of August 15, according to a stock exchange filing. Vedanta’s winning bid, based on the NPV method, evaluates the profitability of the investment by comparing the present value of future cash inflows to the current cost of the investment, also known as the 'time value of money' in accounting terms.
JAL’s key verticals—power, real estate, cement, hotels, and EPC—complement Vedanta’s existing businesses. Vedanta already has a significant portfolio in power, including Talwandi Sabo and Meenakshi Energy. The acquisition will allow Vedanta to leverage its experience in metals, mining, and power to realize synergies in JAL’s assets, particularly in limestone and coal mines.
Further, once Vedanta’s power business is demerged, the power business from JAL will add significant value. The real estate assets also hold development potential through partnerships, sources added.
This acquisition is a strategic move for Vedanta, enhancing its footprint in key sectors and potentially boosting its long-term growth and profitability.
Frequently Asked Questions
What is the total NPV offer made by Vedanta for Jaiprakash Associates?
Vedanta Ltd has made a net present value (NPV) offer of ₹12,505 crore for Jaiprakash Associates Ltd (JAL).
How much will Vedanta pay upfront for Jaiprakash Associates?
Vedanta will pay an initial ₹4,000 crore post-approval by the National Company Law Tribunal (NCLT).
What is the payment timeline for the remaining amount?
The remaining amount will be paid over the next 5-6 years, post-NCLT approval.
What sectors does Jaiprakash Associates operate in?
Jaiprakash Associates operates in real estate, cement, power, hotels, and roads.
What is the current outstanding debt of Jaiprakash Associates?
Jaiprakash Associates has an outstanding debt of ₹55,371.21 crore as of August 15.
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