Government-backed National Asset Reconstruction Company Ltd (NARCL) is reportedly poised to take control of Jaiprakash Associates Ltd (JAL) after no competing bids emerged for its ₹12,000 crore offer. .
According to several newspaper reports, the process consultant IDBI Capital Markets and Securities (ICMS), which had extended the bid deadline by a week to January 14, received no challenge, confirming NARCL’s status as the sole bidder. Sealed as
JAL, a Noida-based conglomerate, owes ₹57,177 crore to creditors, including ₹15,465 crore to State Bank of India and ₹10,443 crore to ICICI Bank. NARCL’s bid offers lenders a recovery of 23%, comprising 15% in cash and 85% in government-guaranteed security receipts – a structure unique to NARCL. The acquisition, once finalised, will be the largest in NARCL’s portfolio, an important step to boost its performance after a slow financial year.
Earlier this month, around a dozen entities showed interest in JAL’s assets, but none matched or surpassed NARCL’s offer. “It was decided that there was no point in extending the deadline because no serious bids were expected,” said a person familiar with the process. The formal handover is expected to be completed by March, allowing lenders to record recovery within the current financial year.
JAL, one of the largest unresolved insolvency cases under the Insolvency and Bankruptcy Code (IBC), entered insolvency proceedings in 2017 following directions from the Reserve Bank of India. Legal battles have delayed resolution, but the takeover of NARCL is set to consolidate valuable assets, including a cement plant with a capacity of over 9 million tonnes, real estate near the Yamuna Expressway, luxury hotels, a hospital, Power Plant and Buddha International Circuit included. .
The ₹12,000-crore bid is second only to Videocon Industries’ ₹65,000-crore bankruptcy case in terms of debt size. As the largest resolution in its history, the acquisition of JAL marks a significant milestone in India’s efforts to resolve high-value distressed cases.
