Brief:
The lenders of Jaiprakash Associates Ltd (JAL) are moving ahead with a challenge auction this week, setting a base value of ₹12,000 crore to resolve one of India’s largest insolvency cases. With big names such as Adani, Dalmia Bharat, Vedanta, JSPL, and PNC Infratech in the fray, the outcome of this auction will decide the future of JAL’s diverse portfolio spanning cement, real estate, and infrastructure.
Auction Plan and Rules
According to reports, the Committee of Creditors (CoC) has scheduled the auction for Friday, with the starting point fixed at ₹12,000 crore in net present value (NPV) terms. The auction will take place over email, where each round requires bidders to raise their offer by a minimum of ₹250 crore.
Participants will be given an hour to submit revised bids, followed by 30 minutes during which lenders will evaluate the offers through a formula-based mechanism. If the top offer remains unchanged for two consecutive rounds, the process will conclude, and lenders may then invite revised resolution plans backed by firm funding commitments.
Land Dispute Clause
In addition to the auction bids, lenders have placed an extra condition linked to JAL’s long-standing YEIDA land dispute. Bidders must agree to pay an additional amount if the Supreme Court rules in JAL’s favour in its case against the Yamuna Expressway Industrial Development Authority (YEIDA). Earlier this year, the Allahabad High Court upheld YEIDA’s cancellation of land allotment, which JAL is currently contesting in the apex court.
The Bidders in Fray
Five contenders have expressed interest in acquiring JAL’s assets:
- Adani Group and Dalmia Bharat, both of which have secured approval from the Competition Commission of India (CCI).
- PNC Infratech and Jindal Steel & Power (JSPL), which are awaiting CCI clearance.
- Vedanta Group, which has not yet filed for approval.
The intense competition among these large corporates underscores the strategic importance of JAL’s cement and infrastructure holdings.
JAL’s Debt Burden and Assets
Once a flagship of the Jaypee Group, Jaiprakash Associates has interests in cement, real estate, infrastructure, and hospitality. Some of its marquee projects include Jaypee Greens, Wish Town, and the International Sports City near Jewar Airport.
However, years of financial stress have left the company with admitted claims of over ₹59,000 crore, making it one of the biggest cases under India’s insolvency framework.
Disclaimer:
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.