Adani’s Bold Move: ₹12,600 Crore Unconditional Bid for Jaiprakash Associates as Dalmia Leads with Caveats

On July 7, 2025, the corporate insolvency resolution process for Jaiprakash Associates Ltd (JAL), a flagship company of the debt-laden Jaypee Group, took a dramatic turn as the Adani Group emerged as a key contender with an unconditional ₹12,600 crore bid. While Dalmia Bharat has positioned itself as the front-runner with a higher ₹14,600 crore offer, its bid is contingent on the resolution of a contentious land dispute, making Adani’s straightforward proposal a strong competitor. This high-stakes bidding war, involving other heavyweights like Vedanta, Jindal Power, and PNC Infratech, underscores the intense competition for JAL’s diverse assets. Here’s a closer look at the unfolding saga and its implications.

Jaiprakash Associates: A Troubled Giant with Valuable Assets

Jaiprakash Associates, a diversified infrastructure conglomerate, operates across cement, power, engineering and construction (EPC), hospitality, real estate, and sports infrastructure. Its portfolio includes four cement plants in Uttar Pradesh and Madhya Pradesh with a total capacity of 5.6 million metric tonnes per annum, a 279 MW captive thermal power plant, luxury hotels in Delhi-NCR, Mussoorie, and Agra, and significant real estate holdings such as Jaypee Greens, Jaypee Wish Town, and the strategically located Jaypee International Sports City near the upcoming Jewar International Airport in Uttar Pradesh. The company also holds a 26% stake in Jaiprakash Power Ventures and operates the Yamuna Expressway.

However, JAL has been grappling with financial distress, defaulting on loans worth over ₹57,185 crore, leading to its admission into the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) on June 3, 2024. The National Asset Reconstruction Company Ltd (NARCL), which acquired ₹55,000 crore of JAL’s debt from a State Bank of India-led consortium, is the primary claimant, with other creditors including Punjab National Bank, ICICI Bank, IDBI Bank, and a significant number of homebuyers.

The Bidding War: Adani vs. Dalmia and Others

The Committee of Creditors (CoC) opened bids on July 7, 2025, revealing five resolution plans for JAL’s acquisition. The key players and their offers are:

• Adani Group: Submitted an unconditional bid of ₹12,600 crore, with reports suggesting an upfront payment of over ₹8,000 crore. Adani’s offer stands out for its lack of conditions, making it a compelling choice for creditors seeking certainty.
• Dalmia Bharat: Emerged as the front-runner with a ₹14,600 crore bid, but its offer hinges on the resolution of a land dispute involving nearly 1,000 hectares of the Gautam Buddh Nagar Sports City project, currently under litigation in the Supreme Court. If the dispute remains unresolved, Dalmia’s effective bid value could drop to ₹12,600 crore, aligning with Adani’s offer.
• Vedanta: Offered ₹12,500 crore, also contingent on the land dispute’s resolution.
• Jindal Power: Bid ₹10,300 crore, similarly tied to the land issue.
• PNC Infratech: Proposed ₹9,500 crore, the lowest among the shortlisted bidders.

The Suraksha Group, which previously acquired JAL’s real estate arm, Jaypee Infratech, was disqualified from this round due to its failure to provide a mandatory bank guarantee.

The Land Dispute: A Critical Caveat

The Gautam Buddh Nagar Sports City project, a key component of JAL’s real estate portfolio, is mired in a legal battle. In February 2020, the Yamuna Expressway Industrial Development Authority (YEIDA) canceled six land allotments to JAL, citing payment lapses. The Allahabad High Court upheld this decision in March 2025, and the matter is now pending before the Supreme Court, with a hearing scheduled for July 29, 2025. The disputed land, valued at approximately ₹2,000 crore, significantly impacts bid valuations. Bidders like Dalmia, Vedanta, and Jindal Power have tied their offers to a favorable resolution, while Adani’s unconditional bid avoids this risk, positioning it as a safer bet for creditors.

The litigation raises concerns about asset control, with bidders wary of a repeat of the Bhushan Steel-JSW controversy, where post-acquisition ambiguities triggered disputes. A source noted, “Once a bid is won, and the bidder loses control over the land parcels, what is the recourse?”

Why Adani’s Bid Stands Out

Adani Group’s unconditional ₹12,600 crore bid reflects its aggressive strategy to expand its cement and infrastructure portfolio, building on recent acquisitions like Ambuja Cements and ACC. The conglomerate’s willingness to pay a substantial upfront amount without conditions signals confidence in JAL’s asset value, particularly its cement plants and strategically located real estate near Jewar Airport. Adani’s track record of acquiring distressed assets—over 60 acquisitions since FY19, including GVK’s Mumbai and Navi Mumbai Airports and Essar’s 1200 MW Mahan Power Plant—underscores its expertise in turning around troubled entities.

However, some reports suggest Adani’s bid may have reached ₹16,000 crore, positioning it ahead of Dalmia’s conditional offer. The CoC has urged all bidders to revise their offers, indicating that negotiations are ongoing, and a “challenge process” may be initiated to maximize value.

Dalmia’s Conditional Lead

Dalmia Bharat, a major player in the cement industry, sees JAL’s cement assets as a strategic fit. Its ₹14,600 crore bid, which includes the disputed land parcel, is the highest but carries significant risk due to the unresolved litigation. Dalmia’s earlier attempt to acquire JAL’s cement business in 2023 fell through due to insolvency proceedings, resulting in a ₹113 crore impairment loss. The company’s cautious approach, tying its bid to the land dispute’s resolution, reflects lessons learned from past challenges.

Strategic Implications

The race for JAL is one of India’s most closely watched insolvency proceedings, given its massive ₹57,185 crore debt and diverse asset portfolio. The outcome will reshape the ownership of a once-ambitious conglomerate and impact stakeholders, including banks, homebuyers, and employees. For Ad-era, acquiring JAL would strengthen its dominance in cement and infrastructure, while Dalmia’s success would bolster its position in the cement sector. The resolution also highlights the complexities of India’s IBC process, where legal disputes and asset valuation challenges can complicate high-stakes acquisitions.

Public Sentiment and Market Reaction

Posts on X reflect intense interest in the bidding war, with users noting Adani’s unconditional offer as a strategic masterstroke and Dalmia’s higher but conditional bid as a calculated risk. Shares of Jaiprakash Associates hit a 5% lower circuit at ₹3.07 on July 4, 2025, despite the acquisition buzz, reflecting market uncertainty amid the insolvency process.

Conclusion

The battle for Jaiprakash Associates is heating up, with Adani Group’s unconditional ₹12,600 crore bid positioning it as a strong contender against Dalmia Bharat’s higher but conditional ₹14,600 crore offer. The unresolved land dispute over the Gautam Buddh Nagar Sports City project remains a critical factor, potentially leveling the playing field if Dalmia’s bid value drops. As the CoC evaluates revised offers and navigates the legal complexities, the outcome will determine the future of JAL’s valuable assets and signal the resilience of India’s insolvency framework. For now, Adani’s bold, no-strings-attached approach gives it an edge in this high-stakes corporate takeover.