JP Associates
The JP Associates Group is now sold. This group has been bought by the Vedanta Group of Anil Aggarwal. Gautam Adani also had a group in the company’s bidding process. But by bidding more money from them, Vedanta bought JP for 17 thousand crores. Vedanta Group will get from JP’s cement plant to hotel after this deal. But do you know where the 17 thousand crore rupees will be spent by JP Group? Let us tell you what Vedanta will get in this deal as well as understand what the JP group of 17,000 crores will do.
The business of JP Associates Group extends from real estate to hotel-revenue. The company was submerged in debt, due to which it was auctioned. JP’s auction was earlier started with Rs 12 thousand crore. But later the group of Gautam Adani, who was growing bid, also came to bid. But finally Vedanta Group bought the company for 17 thousand crores.
Where will JP Associates spend money
JP Associates has a huge debt of Rs 57,185 crore, as stated in various sources. The Rs 17,000 crore received from this acquisition can be used in paying loans and reorganizing the company. JP’s money will go to repay the debt of banks and financial institutions. Jaypee Group creditors include State Bank of India (SBI) and National Asset Reconstruction Company Limited (NARCL). This amount will be used to partially settle these claims, as according to the guidelines of the bankruptcy process of NCLT. If any amount is left, it can be used to re -build the JP group. This may include projects like JP Greens in Greater Noida, JP International Sports City near Vishtown or Jewar Airport in Noida.
However, it is important to keep in mind that Jaypee Group will not have the freedom to spend this amount independently. Under the insolvency process, resolution professionals (RP) and Committee of Creditors (COC) control the use of this amount. Most of the part of this will be distributed among the company from whom the loan and any balance can be used for restructuring or other legal obligations of the company.
What will Vedanta Group get?
At the same time, Vedanta Group will get assets from JP’s real estate to hotel. If you talk about the real estate sector, then JP’s grip in this sector is very strong. Company major projects include JP International Sports City spread over 2,470 acres on Yamuna Expressway, JP Greens of 452 acres in Greater Noida and Vishtown Township of 1,063 acres in Noida. All these will now be of Vedanta.
Apart from this, JP has a lot of work in the cement sector as well. The company also has Chunar and Churk plants in Madhya Pradesh. There are also companies with stone mines and 279 MW captive power capacity.