Vedanta eyes takeover of Jaiprakash Power Ventures

FILE PHOTO: A fowl flies previous the emblem of Vedanta put in on the facade of its headquarters in Mumbai, India January 31, 2018. REUTERS/Danish Siddiqui/File Picture
| Picture Credit score:
DANISH SIDDIQUI

Mining mogul Anil Agarwal’s Vedanta Ltd is eyeing full management of Jaiprakash Energy Ventures Ltd (JPVL), the profit-making energy arm of debt-laden Jaiprakash Associates Ltd (JAL).

The metals-to-mining conglomerate is making ready to weigh in on a attainable public sale for added stakes in JPVL, in a transfer that might set the stage for what market observers describe as a doubtlessly hostile takeover.

Lenders of Jaiprakash Energy Ventures had beforehand approached a couple of bidders of Jaiprakash Associates together with Adani, sources stated. Some different asset funding funds are additionally in fray. 

High bidder

Vedanta is the highest bidder for debt-ridden Jaiprakash Associates. It emerged H1, tipping Adani, with its bid having a web current worth of ₹12,505 crore. If its decision plans undergo, the mining moghul’s conglomerate would find yourself with a 24 per cent stake in Jaiprakash Energy. 

Sources within the know stated Vedanta is contemplating throwing in its hat to bid or buyout round ₹3,800 crore of compulsorily convertible desire shares (CCPS) issued by lenders of the Jaiprakash Energy Ventures, with ICICI Financial institution being the lead banker. This is able to be convertible into fairness, roughly 25 per cent stake within the firm. 

Among the bidders for Jaiprakash Associates informed businessline that they might not prefer to take part within the CCPS, submit Friday’s bidding course of’ consequence. 

Put collectively, the stake can be roughly 49 per cent.

The CCPS upon conversion might present the profitable bidder with a 25 per cent stake in JP Energy. The conversion will set off an open supply for an extra 26 per cent stake within the firm, as per the SEBI’s pointers.

“Sure, Vedanta is evaluating bidding for the CCPS; however nothing has been finalised,” stated a supply. 

A banker, requesting anonymity, stated some discussions on the CCPS and bids might take subsequent week onwards. 

“With Jaiprakash Affiliate’s energy, cement and actual property property, the acquisition could possibly be Vedanta’s alternative  for unlocking worth,” a market supply stated. 

Vedanta is but to reply to queries by businessline. 

Jaiprakash Energy Restructuring 

Jaiprakash Energy Ventures (JPVL) is a listed, worthwhile entity that went via a debt restructuring in 2019. Underneath the plan, lenders, led by ICICI Financial institution, had been issued compulsorily convertible desire shares, a type of funding, into the corporate for round ₹3,800 crore. These CCPS could possibly be transformed into fairness stake at a later stage, usually submit finish of a sure time interval. 

JPVL had for the quarter ending June 30, FY26, reported a ₹1,584 crore income from operations, down 10 per cent, y-o-y. Internet revenue was ₹278 crore, down 20 per cent y-o-y. 

Earnings from the facility vertical stood at ₹1,584 crore, whereas the phase revenue was at ₹644 crore.

The corporate in a observe to its accounts stated in earlier years, it had given the company assure to State Financial institution of India of $1,500 lakh towards loans granted by SBI to the father or mother firm, JAL.

JPVL stated it has written to SBI that in view of CIRP course of (company insolvency) towards JAL has been began, the DRT (Debt Restoration Tribunal) proceedings towards the debtors (JAL) might be on maintain. 

Additional, the corporate has additionally filed its declare to the tune of $1,500 lakh (equal to ₹1,240 crore — transformed on the trade fee of ₹82.61) with Decision Skilled of JAL, towards the stated company assure, which was thought-about/taken on document to the extent of ₹512 crore (as provisional contingent quantity).

Printed on September 7, 2025