Adani Group-backed Ambuja Cements has submitted an INR5.8bn (US$60.3m) offer for bankrupt Jaypee Cement, becoming the sole bidder after My Home Group withdrew its lower INR3bn proposal.
Lenders are pressing Ambuja to raise its bid, which remains below Jaypee Cement’s INR8.8bn liquidation value. They are expected to consider liquidation if the offer is not improved. The current bid represents 5.7 per cent of admitted creditor claims of INR33.61bn, comprising INR28.92bn from secured creditors and INR4.69bn from unsecured creditors.
Lenders had previously rejected a INR2.27bn debt acquisition offer from the National Asset Reconstruction Company. Separately, the National Company Law Tribunal approved Adani Group’s INR145.35bn resolution plan for Jaiprakash Associates, after lenders rejected a rival Vedanta bid reportedly worth INR34bn more.
Jaypee Cement entered corporate insolvency in July 2024 following a State Bank of India petition. It has 5Mta of integrated cement capacity and two captive power projects in Andhra Pradesh, including an operational 35MW unit and an unfinished 25MW unit. Its 1.2Mta Shahabad plant and 60MW captive power plant in Karnataka remain suspended.
