Adani Enterprises chosen to acquire Jaypee Group despite offering less than Vedanta

By Admin

20 Nov, 2025

The insolvency proceedings of Jaiprakash Associates Ltd. (popularly known as Jaypee Group) have taken an unexpected but strategically significant turn. Despite offering a lower total bid value than Vedanta Ltd., Adani Enterprises Ltd. has emerged as the preferred buyer reflecting the growing importance of upfront payments and faster resolution timelines in India’s insolvency ecosystem.

Creditors Prefer Adani’s Lower Bid for Higher Upfront Payment

Creditors to the debt-laden Jaiprakash Associates unanimously backed Adani’s ₹13,500-crore takeover offer under the Insolvency and Bankruptcy Code (IBC). Surprisingly, this bid was chosen over Vedanta’s higher ₹17,000-crore proposal.
The key deciding factor: Adani offered significantly larger upfront payments, which creditors found more attractive and secure. According to officials familiar with the process, stakeholders prioritized immediate recoveries over higher long-term payouts.

Vedanta’s Longer Payment Timeline Reduced Its Attractiveness

While Vedanta’s offer was larger in value, it involved a five-year staggered payment structure. In contrast, Adani proposed a much shorter 1.5 to 2-year payout timeline.
This substantial difference in payment speed influenced the committee of creditors, who preferred faster resolution, quicker fund recovery, and reduced uncertainty.

Approval Process Moves Toward NCLT

Officials involved in the transaction confirmed that creditors have already voted in favour of Adani’s bid. The committee of creditors (CoC) is now expected to finalize the selection and submit the approved resolution plan to the National Company Law Tribunal (NCLT) for confirmation.
Emails sent to Adani, Vedanta, and the National Asset Reconstruction Co. Ltd. (NARCL) did not receive immediate responses.

A Crowded Bidding Field Reflects Jaypee Group’s Strategic Importance

In addition to Adani and Vedanta, several major players participated in the bidding process, including:

• Dalmia Bharat
  
  

• Jindal Power
  
  

• PNC Infratech
  
  

Jaypee’s controlling shareholder, Manoj Gaur, also submitted a last-minute proposal, though it was later withdrawn. The wide interest demonstrates the strategic value of Jaypee’s assets across infrastructure, cement, and real estate.

One of India’s Largest Insolvency Cases

Jaiprakash Associates, once a dominant name in India’s infrastructure and cement sectors, owes creditors around ₹55,000 crore. The insolvency process was initiated in June last year and has since become one of the biggest ongoing bankruptcy resolutions in the country.
NARCL, which had earlier acquired the company’s stressed loans from a consortium led by the State Bank of India, remains the largest claimant in the case.

What This Means for India’s Insolvency Landscape

The decision to favour a lower bid with faster payouts reinforces a key trend in India’s IBC framework:
Liquidity and early recovery often outweigh higher but delayed settlements.
For creditors, especially banks, upfront payments improve balance sheets more quickly and reduce long-term risks associated with staggered recoveries.

Conclusion

Adani Enterprises’ selection to acquire the Jaypee Group highlights the critical role of payment structure and timeline in insolvency resolution. As the process now moves toward NCLT approval, the deal could mark one of the most impactful acquisitions in India’s infrastructure sector and another major milestone in Adani Group’s aggressive expansion strategy.