Adani Enterprises gets lenders' nod to acquire Jaiprakash Associates

Core Insights - Adani Enterprises has successfully secured approval from creditors for its takeover proposal of Jaiprakash Associates, a bankrupt infrastructure firm, although the bid value has not been disclosed [1][5] - The acquisition will grant Adani control over Jaiprakash Associates' diverse business operations, which reported revenues exceeding ₹6,500 crore and assets over ₹35,000 crore for FY25 [1][5] Group 1: Acquisition Details - Adani will acquire 3,985 acres of land in Noida and Greater Noida, 6.5 million tonnes of cement capacity in Madhya Pradesh and Uttar Pradesh, and a 24% stake in Jaiprakash Power Ventures [2] - The acquisition also includes a hospitality business with 867 rooms across five hotels in Delhi, Agra, and Mussoorie, along with construction and fertilizer plants [2] Group 2: Competitive Landscape - Adani Enterprises outbid four other competitors, including Vedanta Ltd, Dalmia Bharat, Jindal Power, and PNC Infratech, to take over Jaiprakash Associates under the corporate insolvency resolution process [2][6] - Vedanta had previously bid an enterprise value of ₹17,000 crore for Jaiprakash Associates but ultimately lost to Adani's proposal, which garnered the most support during the voting process [6] Group 3: Financial Aspects - Adani's resolution plan includes a total value exceeding ₹14,500 crore, comprising ₹6,000 crore as an upfront payment and an additional ₹7,600 crore payable after two years [6] - The net present value of Adani's offer is estimated at ₹12,000 crore, indicating a competitive financial strategy compared to other bids [6] Group 4: Regulatory Process - Following the approval from creditors, Adani Enterprises must now obtain regulatory approvals, including from the National Company Law Tribunal (NCLT) in Allahabad, to finalize the acquisition [7]