New Delhi: The Gautam Adani-led Adani Group is working relentlessly to expand its business. The country’s third-largest industrial conglomerate is reportedly preparing to acquire the debt-ridden company Jaiprakash Associates Limited (JAL).
The group has submitted an unconditional bid for the acquisition and has sought approval for the deal from the Competition Commission of India (CCI). It is important to note that Jaiprakash Associates Limited has a debt of over Rs 50,000 crore.
Jaiprakash Associates Limited is currently undergoing the Corporate Insolvency Resolution Process (CIRP), as it has been unable to repay its debt. As per the information submitted to the CCI, the Adani Group intends to purchase 100 percent of the shares of the company. The acquisition will be carried out either by the group’s flagship company, Adani Enterprises Limited, or Adani Infrastructure and Developers Private Limited.
Jaiprakash Associates is a major infrastructure company that operates in sectors such as engineering, construction, cement, power, real estate, and hospitality.
Here are some of the key details:
- Adani Enterprises, Adani Infrastructure and Developers, and Jaiprakash Associates have informed the CCI that this deal will not have any adverse impact on market competition.
- Dalmia Cement (Bharat) Limited also sought approval from CCI to acquire Jaiprakash Associates last month.
- Dalmia Cement aims to acquire the entire stake of Jaiprakash Associates
- The deal includes its assets as well as its stakes in subsidiaries and joint ventures.
- Earlier, the lenders of Jaiprakash Associates had rejected a proposal from JP Infratech, in which it had expressed interest in acquiring Jaiprakash Associates.
- Five companies – Adani Enterprises, Vedanta Group, Dalmia Bharat Cement, Jindal Power, and PNC Infratech – have submitted their plans to acquire Jaiprakash Associates.
Jaiprakash Associates and the debt:
Following an order by the National Company Law Tribunal (NCLT), Allahabad Bench, Jaiprakash Associates was admitted into insolvency proceedings on June 3, 2024. The main reason why the company was taken into insolvency because it failed to repay its debts.
Jaiprakash Associates has a total debt of Rs 57,185 crore. The National Asset Reconstruction Company Limited (NARCL) is the top creditor. NARCL purchased the company’s debt from a group of lenders led by the State Bank of India (SBI).
Jaiprakash Associates
Jaiprakash Associates has major real estate projects such as JP Greens in Greater Noida, JP Greens Wish Town in Noida, and JP International Sports City near the Jewar International Airport. In addition, the company owns three commercial/industrial office spaces in Delhi-NCR. In the hospitality sector, it operates five hotels in Delhi-NCR, Mussoorie, and Agra.