Vedanta challenges NCLT nod to Adani’s bid to acquire Jaiprakash Associates

The group emerged as the winning bidder for Jaiprakash Associates despite being outbid by Vedanta by nearly Rs 2,000 crore. The auction gained interest from five major players — Adani, Vedanta, Dalmia Cement, Jindal Power and PNC Infratech.

While the floor price was Rs 12,000 crore, only Adani and Vedanta remained in the final round. Vedanta submitted the higher overall bid of around Rs 16,000 crore, which included Rs 3,800 crore as an upfront payment and the balance to be paid over five years. In contrast, Adani’s bid totalled Rs 14,535 crore, featuring a higher upfront component of over Rs 6,000 crore, with the rest scheduled for payment within two years.

Vedanta’s bid was estimated at around Rs 12,500 crore, slightly higher than Adani’s Rs 12,000 crore when adjusted for net present value. Bankers said Adani’s bid was likely preferred as it offered a higher upfront payment and a shorter payout timeline, lowering risk while enabling faster cash recovery. Vedanta challenged the decision before the NCLT, but the tribunal dismissed the plea last week.

The outcome was also influenced by the composition of CoC, which was dominated by NARCL. Leading banks had transferred Jaiprakash’s defaulted loans — exceeding Rs 57,000 crore — to NARCL.

Thus, NARCL controlled roughly 86% of the voting rights, while original lenders such as SBI and ICICI Bank held less than 3% collectively. Consequently, the decision fell in the hands of a single dominant entity.

Total admitted claims against Jaiprakash Associates stood at Rs 5.44 lakh crore, indicating a recovery of under 3%. Even when considering only bank loans of Rs 57,185 crore, recovery works out to about 25.4%. As is typical under the IBC framework, equity shareholders are left with nothing. Jaiprakash’s stock remains suspended due to procedural issues, and the company reported a loss of Rs 4,933 crore in FY25.