Adani Enterprises to acquire Jaiprakash Associates for ₹13,500cr
What's the story
Adani Enterprises has received unanimous approval from the creditors of Jaiprakash Associates for its ₹13,500 crore takeover proposal. The infrastructure group was previously one of India's largest conglomerates but is now facing insolvency proceedings. The decision comes as a major development in one of the country's largest ongoing bankruptcy cases.
Bid comparison
Adani's bid preferred to Vedanta's
Despite Vedanta's higher ₹17,000 crore offer, creditors (mostly Indian banks) chose Adani's proposal. The decision was mainly due to the larger upfront payments offered by Adani Enterprises, which were more appealing to stakeholders. Other bidders for Jaiprakash Associates included Dalmia Bharat, Jindal Power and PNC Infratech. A last-minute bid from controlling shareholder Manoj Gaur was also submitted but later withdrawn.
Payment terms
Adani's payment timeline sways creditor preferences
Vedanta's bid included a five-year payment timeline, much longer than the 1.5-2 years proposed by Adani Enterprises. This difference in payment timelines played a crucial role in swaying creditor preferences toward Adani's proposal. Now, the committee of creditors will make a final decision on this matter and submit it to the National Company Law Tribunal (NCLT).
Claimants' list
NARCL leads claimants in ongoing resolution process
The National Asset Reconstruction Company (NARCL), which purchased Jaiprakash's loans from a lender consortium led by the State Bank of India, heads the list of claimants in the ongoing resolution process. The decision to approve Adani Enterprises's takeover proposal marks a significant step forward in this complex bankruptcy case, and highlights the importance of upfront payments in creditor decisions.