MC EXCLUSIVE Vedanta taps lenders to back Rs 17,000-crore bid for Jaiprakash Associates

Vedanta has already received clearance from the Competition Commission of India (CCI) for the ₹17,000 crore acquisition of JAL.

Billionaire Anil Agarwal-led Vedanta Group is looking to mobilise funds from global investors and lenders to finance its Rs 17,000-crore bid for bankrupt Jaiprakash Associates Limited (JAL), sources told Moneycontrol.

The diversified resources conglomerate, which has emerged as the highest bidder ahead of the Adani Group, has held initial discussions with a few lenders for tying up the funds, the sources said.

The conversations come as the lenders to JAL have sought proof of funds or a letter of comfort to back Vedanta’s bid.

Sources added that fundraising efforts are focused on the upfront payment that Vedanta has to make to JAL lenders to take over the assets. They added that the subsequent annual payments to be made over the next five years, as part of its resolution plan, will largely be derived from the cash flows generated from the acquired assets.

The proposed transaction, if successful, would add significantly to Vedanta’s power generation capacity and real estate through JAL’s extensive land banks and township assets.

An email seeking Vedanta’s comment had not elicited a response till the time of publication.

Vedanta has already got the go-ahead from the Competition Commission of India (CCI) for the Rs17,000-crore JAL acquisition.

Over the past few years, the group has focused on deleveraging, though its holding company, Vedanta Resources, continues to carry substantial debt. The parent remains heavily dependent on dividends and brand fees from its Indian arms — Vedanta Ltd and Hindustan Zinc — to service these obligations.

In an August note, Fitch Ratings said Vedanta Resources’ debt had fallen to about $5 billion as of FY25 from $9 billion in FY22, reflecting the group’s prioritisation of debt repayment over shareholder returns.

However, concerns about governance and leverage continue to shadow the group. In July, Viceroy Research, a US-based short seller, alleged that Vedanta engaged in accounting irregularities, disguised liabilities, and unsustainable debt practices, accusing it of diverting cash from its Indian subsidiaries to aid the indebted parent.

Viceroy also flagged regulatory concerns around Vedanta’s demerger plan and alleged lapses by its auditors.

Vedanta denied the allegations, calling the report “a malicious mix of misinformation and baseless claims” and reaffirming that its disclosures and governance standards were compliant with all legal and audit norms.

Jaiprakash Associates’ insolvency

The bidding for JAL attracted several large industrial groups, including Dalmia Bharat, Naveen Jindal-led Jindal Power, and PNC Infratech. While 26 potential bidders expressed interest earlier this year, only Vedanta and Adani submitted binding offers in the final round.

Once the flagship of the Jaypee Group, Jaiprakash Associates had a diverse and a wide portfolio spanning infrastructure, cement, real estate, power, and hospitality. Its prized assets include large township projects such as Jaypee Greens and Wishtown in Noida, the Jaypee Sports City near the upcoming Jewar Airport, cement plants in Uttar Pradesh and Madhya Pradesh with a combined capacity of over 8 MTPA, and hotels like Jaypee Palace (Agra) and Jaypee Vasant Continental (New Delhi).

The company also holds stakes in Jaiprakash Power Ventures and Bhilai Jaypee Cement.

JAL’s debt, estimated at about Rs55,000 crore as of September 2025, has been largely transferred to the National Asset Reconstruction Company Limited (NARCL), which acquired the exposure from a consortium led by State Bank of India.

The Allahabad Bench of the National Company Law Tribunal (NCLT) admitted the company into insolvency proceedings in June 2024.
However, a major legal hurdle remains. There is a dispute with the Yamuna Expressway Industrial Development Authority over the Sports City land allotment, which was cancelled by YEIDA over non-payment of dues and failure to develop core sports facilities within deadline. The cancellation of lease was upheld by the Allahabad High Court in May. The matter is now pending with the Supreme Court, and lenders have said if the verdict goes in JAL’s favour, Vedanta will be required to pay additional compensation to creditors.