NEW DELHI: The Adani Group has approached the Competition Commission of India (CCI) seeking approval to acquire debt-laden infrastructure firm Jaiprakash Associates Ltd (JAL), which is currently undergoing insolvency proceedings.
According to a filing with the CCI on Tuesday, the proposed transaction involves the acquisition of up to 100 per cent shareholding in Jaiprakash Associates by Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd, or by any other entity forming part of the Adani Group.
“The proposed combination relates to the acquisition of up to 100 per cent of the shareholding of the target (Jaiprakash Associates Ltd) by the acquirers (Adani Enterprises Ltd and Adani Infrastructure and Developers Pvt Ltd) or any other entity forming part of the Adani Group,” the notice said.
Jaiprakash Associates, once a major player in the construction and cement sectors, has been facing severe financial stress for several years. It was admitted for corporate insolvency resolution under the Insolvency and Bankruptcy Code (IBC) in 2022 after multiple defaults on its loan repayments.
The company has substantial exposure across infrastructure, real estate, and power projects, and has been working to divest assets to pare down its debt.
This is not the first time the Adani Group has shown interest in the Jaypee Group’s assets. In 2022, Adani Cement had bid for some of the cement assets of Jaiprakash Associates as part of a wider consolidation in the sector.
Expanding footprint in infra
The group’s renewed interest in acquiring JAL in its entirety signals a potential strategic move to expand its footprint in infrastructure and construction-related businesses.
If cleared by the competition watchdog, the acquisition could mark a significant development in Adani’s continued expansion across core infrastructure sectors, and could also provide a long-delayed resolution for creditors of JAL under the IBC process.
The transaction is subject to necessary regulatory approvals, including from the CCI, and any subsequent approval by the National Company Law Tribunal (NCLT) as part of the resolution process.
