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News Topical, Digital Desk : Adani Group has received strong support from lenders for its acquisition of debt-ridden Jaiprakash Associates. According to sources familiar with the matter, approximately 90% of lenders have voted in favor of Adani's resolution plan.
The process was led by the National Asset Reconstruction Company Limited (NARCL), which alone holds 86% of the voting shares.
Some major banks, such as SBI and ICICI Bank, abstained. Their combined share is reported to be less than 3% of the CoC's total votes. Why did Adani's proposal win? Lenders preferred the Adani Group's plan because its upfront payment was much higher than other contenders. The Adani Group's total proposal is worth approximately ₹13,500 crore.
- ₹6,005 crore upfront
- ₹6,726 crore after two years
Its net present value (NPV) is approximately ₹12,000 crore. In comparison, Vedanta Group had bid approximately ₹16,000 crore in the Swiss Challenge process.
- ₹3,770 crore upfront
- ₹13,000 crore in five years
Although Vedanta later attempted to increase the upfront payment, the change was not accepted after the Swiss challenge round was completed.
Next step: Plan to go to NCLT
After the CoC's approval, the lenders will soon issue a Letter of Intent (LoI) to the Adani Group. The resolution professional will then file an application for final approval in the NCLT.
Jaiprakash Associates currently has claims worth ₹57,185 crore pending under the IBC. This major victory for the Adani Group could further strengthen the group's hold in the real estate and infrastructure sectors.
Read More: Big news for Adani Group regarding control of JP Associates, 90% of lenders have received support.
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