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News Topical, Digital Desk : Anil Agarwal-led Vedanta Group has placed a ₹17,000 crore bid to acquire debt-ridden Jaiprakash Associates Limited (JAL). The company is now seeking funding from global hedge funds and foreign investors for the deal. Vedanta has placed the highest bid, outbidding other major companies, including the Adani Group. If successful, this acquisition could significantly enhance Vedanta's power and real estate capabilities.
Vedanta is looking to raise capital from global funds.
According to a Moneycontrol report, Vedanta Group is in preliminary talks with some foreign hedge funds and global investors to get funding support for its ₹17,000 crore bid. Jaypee Associates' creditors have asked Vedanta for proof of funds or a letter of comfort to approve the bid. If the deal is finalized, Vedanta will not only acquire large power generation capacity but also Jaypee Associates' vast land bank and township properties, including projects like Jaypee Greens, Wish Town (Noida), and Jaypee Sports City (near Jewar Airport). The Competition Commission of India (CCI) has already approved this ₹17,000 crore deal. This acquisition is considered strategically important for Vedanta as the company seeks to expand its energy and infrastructure presence.
Focus on debt reduction, but burden on parent company remains Vedanta has focused significantly on reducing its debt over the past few years. According to a Fitch Ratings report, Vedanta Resources' debt has reduced from $9 billion in FY22 to around $5 billion in FY25. However, the parent company still relies on dividends and brand fees from its Indian units – Vedanta Limited and Hindalco Zinc. Governance Questions Raised and the Company's Response In July, US short-seller Viceroy Research accused Vedanta of accounting irregularities and fund diversion. The report claimed that the company was using funds from its Indian units to pay off the parent entity's liabilities. Vedanta rejected these allegations, stating that the report was a mix of false and misleading claims. All our financial statements and audit standards are fully compliant.
Status of Jaypee Associates Jaiprakash Associates Limited (JAL), once the flagship of the Jaypee Group, is now undergoing bankruptcy proceedings. The company owns cement plants (8 MTPA capacity in Uttar Pradesh and Madhya Pradesh), hotels such as Jaypee Palace (Agra) and Jaypee Vasant Continental (Delhi), and stakes in Jaypee Power Ventures and Bhilai Jaypee Cement. Jaypee's total debt is approximately ₹55,000 crore, a major portion of which has been acquired by NARCL (National Asset Reconstruction Company Limited) from an SBI-led consortium. However , the YEIDA land dispute poses a legal hurdle. The Yamuna Expressway Industrial Development Authority (YEIDA) cancelled the lease for Jaypee Sports City because the company failed to develop the sports infrastructure within the deadline. The Allahabad High Court upheld the YEIDA's decision, and the case is now pending in the Supreme Court. If the court's decision is in Jaypee's favor, Vedanta may have to pay additional compensation.
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