Newsletter
Vedanta Group has emerged as the top bidder for debt-ridden Jaiprakash Associates, beating Adani with a ₹17,000 crore offer.
What’s going on: in today’s value, after adjusting for time and interest, the offer works out to about ₹12,505 crore.
Jaiprakash Associates is caught in a land dispute with the Yamuna Expressway Industrial Development Authority (YEIDA). If Jaiprakash ends up winning the case and gets the land or money back, it would increase the company’s value.
That’s why lenders want Vedanta (or any buyer) to promise that they’ll pay an extra amount on top of their bid if this land dispute is resolved in Jaiprakash’s favour, so that the lenders also benefit from the upside.
Under Vedanta’s plan, lenders will still take a 71% haircut on admitted claims.
Why it matters: Vedanta’s interest in Jaiprakash lies mainly in its cement and infrastructure assets, which are tough to replicate from scratch.
Jaiprakash owns multiple cement plants with a sizeable capacity, plus limestone reserves that secure raw material for decades, a critical advantage in the cement business.
The group also holds land parcels tied to real estate and industrial projects, which add tangible value beyond cement. By acquiring Jaiprakash through insolvency, Vedanta can access these operational assets and resources at a steep discount, integrate them into its portfolio, and diversify revenues beyond metals and mining.
