Jaiprakash Associates Finds Six Bidders, Adani, Vedanta Submit Offers

Jaiprakash Associates Ltd. has received financial bids from six potential bidders, two people in the know confirmed. These bidders include Adani Group, Vedanta Group, Dalmia Group, Jindal Steel & Power Ltd., PNC Infratech and Suraksha Asset Reconstruction Co. 

Creditors to JP Associates have admitted claims worth over Rs 57,000 crore. 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. JP Associates is the flagship company of the Jaypee Group.

According to details available, the company owns stake in multiple cement plants, expressways, Jaiprakash Power Ventures, Jaypee Fertilizers, and a string of luxury hotels. 

While these bidders submitted their offers, the committee of creditors is yet to open and review them. According to the people quoted above, if the offers don’t bring a lot of value to the table, the creditors are prepared to split the various assets and sell them individually to bidders. 

JP Associates has been facing the threat of insolvency since 2017 when the Reserve Bank of India identified it as a stressed account in one of its two lists released that year. While multiple lenders have tried to initiate insolvency proceedings, there have been significant delays over the last few years.