Adani Group's Rs 14,000-Crore Offer For Jaiprakash Associates Tops The List

A nearly Rs 14,000-crore offer by Adani Group has topped the list of five potential bidders for Jaiprakash Associates Ltd, under the insolvency proceedings, two people said.

The offer likely includes around Rs 11,000 crore which will be paid upfront, the people quoted above said. Dalmia Bharat's Rs 11,000 crore is the second in the list.

Currently, both bidders are eyeing the cement businesses of Jaiprakash Associates, the first of the two people quoted above said. Currently, Jaiprakash Associates has four cement plants in Uttar Pradesh and Madhya Pradesh and twelve leased limestone mines located in Madhya Pradesh region. The company's total cement capacity is at 5.6 million metric tonne per annum. It has a captive thermal plant of 279 megawatt.

The flagship company of Jaypee Group owes creditors more than Rs 57,000 crore, according to details available on its website.

Major creditors to the company include State Bank of India, National Asset Reconstruction Co., Punjab National Bank, ICICI Bank and IDBI Bank. The company owns assets across cement, power, real estate and hospitality sectors in Delhi NCR and Uttar Pradesh.

Among the other bidders in this case are PNC Infratech, Vedanta Group and Jindal Steel & Power. Suraksha Asset Reconstruction Company also submitted a bid for Jaiprakash Associates, however, it was not considered by the creditors.

Creditors will now review the offers closely and negotiate with the bidders to arrive at a final price for the assets. Bidders currently are keen on taking over all assets of Jaiprakash Associates. If the creditors do not find the right value, they are open to stripping the different business segments and sell them to bidders.

Queries mailed to Adani Group and Dalmia Bharat were not immediately responded to.

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