Adani Enterprises Limited (BSE:512599) is likely to emerge as the highest bidder to acquire Jaiprakash Associates Limited (BSE:532532) (JAL) through insolvency process as its offers to pay acquisition amount in two years have been found better than Vedanta's bid to make payments in five years, sources said. In early September, mining conglomerate Vedanta Group (Vedanta Limited (NSEI:VEDL)) had beaten Adani Group to emerge as the highest bidder, with an offer of INR 125,050 million as net present value (NPV), in an auction carried out by lenders to find suitors for JAL, whose interests span real estate, cement, power, hotels, and road. Later, the lenders held negotiations with these five players to enhance the bid value and maximise realisation.
On October 14, these five bidders submitted fresh signed resolution plans in sealed envelopes. According to sources, the committee of creditors (CoC) of JAL met last week to deliberate on these comprehensive resolution plans and evaluate them for feasibility and viability. The CoC evaluated the resolution plans on the basis of evaluation matrix and then scored the resolution plan of Adani Enterprise Ltd. as the highest, followed by Dalmia Cement (Bharat) and then Vedanta Ltd, they added.
Now, the resolution plan could be put to vote by the CoC in the next two weeks, sources said. It is understood that the payments in Dalmia's plans are contingent upon the Supreme Court's judgement on the pending matter between the JAL and development authority YEIDA. Adani Group is offering the payment to lenders within two years while Vedanta is offering back-ended payments over the next five years.
Last month, the erstwhile promoters of JAL also submitted their offer to settle with the lenders under 12A but they did not cite any clear source of funds, sources said. Such offers are usually given with the intent to derail the resolution process, they added. Earlier, the promoters raised objections to the process and tried to obtain a stay, which was not granted by the courts.
On the overall evaluation of the plans and treatment of all stakeholders, it is expected now that the CoC may vote for Adani Enterprises Ltd. for resolution and turnaround of the JAL, sources said.
