Adani Enterprises shares rise 1% today as Jaiprakash Associates creditors clear Rs 14,500-crore resolution plan

Adani Enterprises Ltd

Adani Enterprises’ share price rose more than 1 percent to around Rs 2,458 on Thursday morning after the Gautam Adani-led conglomerate received approval from the Committee of Creditors (CoC) of Jaiprakash Associates for its resolution offer. The company disclosed late on Wednesday that it had received a Letter of Intent from the resolution professional on November 19, confirming that lenders had voted in favour of its proposal under the Insolvency and Bankruptcy Code.

Adani Enterprises' Rs 14,500-crore plan, as cited by Jefferies in a note, will now move to the next stage of scrutiny with the National Company Law Tribunal’s Allahabad Bench and other regulatory authorities. According to the filing, the implementation may be carried out by Adani Enterprises, other promoter-group entities or through a dedicated special purpose vehicle, depending on the structure laid out in the approved plan.

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Jaiprakash Associates, which owes lenders about Rs 55,000 crore, was admitted into insolvency proceedings in June 2024. Lenders reportedly opted for Adani’s offer because it provided higher upfront payments, even though its net present value was said to be about Rs 500 crore lower than Vedanta’s Rs 17,000-crore bid in the September electronic auction. A score sheet circulated earlier had also placed Adani’s plan at the top, though some lenders had raised questions about the scoring methodology.

Brokerage firm Jefferies maintained its buy rating on Adani Enterprises with a target price of Rs 2,940 per share, noting that the proposed carve-out of Jaypee Group’s cement, power, real estate, hotels and engineering-and-construction assets offers strategic synergies within the Adani Group, subject to NCLT approval.

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