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“If the bid is not improved beyond the liquidation value, banks will vote in favour of liquidation,” one of the people said.Lenders had conducted a challenge auction for Jaypee Cement with a base price of ₹562 crore, which was Ambuja’s pre-auction offer.
The Adani Group subsequently increased its bid to ₹580 crore.
The revised offer is 17.2% of the admitted claims of creditors.The Adani Group and resolution professional (RP) Deepika Bhugra did not respond to ET ’s request for comment.Earlier, the National Company Law Tribunal approved the Adani Group’s ₹14,535 crore resolution plan for Jaypee Associates.
Operations at its 1.2 MTPA cement plant at Shahabad in Karnataka, along with a 60 MW captive power plant, are currently suspended.
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Adani Group-backed Ambuja Cements has submitted a ₹580 crore offer to acquire bankrupt Jaypee Cement, an affiliate of Jaypee Associates, according to people aware of the matter.The only other bidder, My Home Group , exited the process after submitting an offer of ₹300 crore.However, the insolvency resolution of Jaypee Cement hinges on a fine balance, as the Ambuja offer is well below the liquidation value of ₹880 crore, the people said.Lenders are negotiating with the Adani Group to further raise the offer. “If the bid is not improved beyond the liquidation value, banks will vote in favour of liquidation,” one of the people said.Lenders had conducted a challenge auction for Jaypee Cement with a base price of ₹562 crore, which was Ambuja’s pre-auction offer. The Adani Group subsequently increased its bid to ₹580 crore. The revised offer is 17.2% of the admitted claims of creditors.The Adani Group and resolution professional (RP) Deepika Bhugra did not respond to ET ’s request for comment.Earlier, the National Company Law Tribunal approved the Adani Group’s ₹14,535 crore resolution plan for Jaypee Associates. The offer was supported by majority lender NARCL with an 85% voting share. Lenders then rejected a rival bid from Vedanta that offered ₹3,400 crore higher in value, according to court documents.Under insolvency rules, the RP appoints two valuers to determine the fair value and liquidation value of a company, with the average serving as a benchmark for sale.The liquidation value represents what lenders may recover if assets are sold piecemeal, while the fair value reflects the expected price if the business is sold as a going concern.Typically, lenders favour liquidation if bids fall below the liquidation value.Jaypee Cement’s resolution professional has admitted ₹3,361 crore of claims, comprising ₹2,892 crore from secured creditors and ₹469 crore from unsecured creditors, according to the Insolvency and Bankruptcy Board of India website.The company was admitted into corporate insolvency in July 2024 following a petition by State Bank of India Jaypee Cement has an integrated cement capacity of five million tonnes per annum and owns two captive power plants — a 35 MW unit at Jaggayyapet in Andhra Pradesh and another 25 MW unit under implementation at the same site. Operations at its 1.2 MTPA cement plant at Shahabad in Karnataka, along with a 60 MW captive power plant, are currently suspended.
