Vedanta gets CCI's nod to acquire Jaiprakash Associates

The Competition Commission of India has approved Vedanta Limited's acquisition of Jaiprakash Associates Limited following a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

“The Proposed Combination envisages acquisition of Jaiprakash Associates Limited (JAL) by Vedanta Limited (Acquirer) pursuant to a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC),” the Commission said in a release on Tuesday, October 14.

Vedanta Group bids for ₹17,000 crore

Vedanta Group secured the winning bid to acquire Jaiprakash Associates (JAL) with an offer of ₹17,000 crore, beating the Adani Group, news agency PTI reported on September 5, citing people aware of the development.

The bid amount translates to JAL's net present value of ₹12,505 crore, the report said.

The bids from Vedanta and Adani Groups came as lenders of JAL carried out a challenge process for the company's sale under the IBC, with multiple bidders participating. The Committee of Creditors (CoC) held a meeting on September 5 to oversee this challenge process.

Ultimately, only the Adani and Vedanta Group submitted firm bids; Vedanta's final bid of ₹17,000 crore, corresponding to an NPV (net present value) of ₹12,505 crore, was successful, surpassing Adani Group, the report said.

JAL insolvency proceedings

Financial creditors have claimed ₹57,185 crore as unpaid dues from JAL. The National Asset Reconstruction Company Ltd (NARCL) leads the list of claimants after acquiring stressed JAL loans from a consortium of lenders led by the State Bank of India.

JAL entered the corporate insolvency resolution process (CIRP) via the National Company Law Tribunal, Allahabad Bench, as per the order dated June 3, 2024. The process was initiated following the conglomerate's default on loan payments.

Up to 25 companies expressed interest in acquiring JAL till April this year. However, by June, JAL announced it had received five bids accompanied by earnest money as part of the insolvency process for the company's acquisition.

Adani Enterprises, Dalmia Bharat Cement, Vedanta Group, Jindal Power and PNC Infratech had submitted bids to acquire JAL.