
Shares of Jaiprakash Associates (JP Associates) hit lower circuit during the trading session on Friday even the Adani Group emerges as the frontrunner to acquire it. JP Associates is currently undergoing insolvency proceeding, while Gautam Adani-led conglomerate have made a bid of Rs 12,500 crore to acquire it, suggest a report from Business Standard citing sources.
According to the report, Adani Group has proposed an upfront payment of more than Rs 8,000 crore without any preconditions. However, Adani Group is likely to face a stiff challenge from Dalmia Group, who may top Adani's offer, if a legal hurdle related its JP's sports city project is resolved. The case is currently pending before the Supreme Court of India.
Amid the buzz, shares of Jaiprakash Associates hit a lower circuit of 5 per cent to Rs 3.07 apeice, commanding a total market capitalization of more than 750 crore. The stock has plunged more than 71 per cent from its 52-week high at Rs 10.60 hit a year ago. The stock has crashed 51 per cent in the last six months.
The Committee of Creditors (CoC), led by National Asset Reconstruction Company Ltd (NARCL), is poised to start negotiations with resolution applicants for Jaiprakash Associates Limited (JAL) in the coming week, according to sources. This development follows NARCL's acquisition of a sizeable portion of JAL's loans from a consortium originally spearheaded by the State Bank of India.
Among the companies that have submitted resolution plans are the Adani Group, Dalmia Bharat Group, PNC Infrastructure, Vedanta, and Jindal Steel & Power. The Adani Group, known for its expansion in infrastructure, energy, and cement sectors, is particularly interested in JAL's cement and real estate assets. This aligns with Adani’s strategy of enhancing its footprint in high-growth markets, particularly within the cement industry.
The insolvency proceedings represent a critical phase for JAL, which has been grappling with substantial debt and operational hurdles. Resolving the company's insolvency is expected to provide much-needed relief to its creditors, including banks and financial institutions, while facilitating the company’s restructuring and operational revival.
In a separate setback, the Allahabad High Court upheld a decision by the Yamuna Expressway Industrial Development Authority to cancel a 1,000-hectare land allotment for JAL's Sports City project near New Delhi, as ruled in March 2025. This decision strikes a further blow to the company amidst its insolvency challenges.