Only Ambuja in Fray for Jaypee Cement, Submits ₹580 Crore Bid

New Delhi, May 18: In a surprising turn of events, Ambuja Cements has put in a bid of ₹580 crore for Jaypee Cement, falling short of the company's liquidation value of ₹880 crore. Lenders are now engaging in discussions with the Adani Group for a more favourable offer.

Liquidation Value Gap

The insolvency resolution hangs in balance as the Ambuja bid is well below the ₹880 crore liquidation value. Under insolvency rules, the resolution professional appoints two valuers to determine fair value and liquidation value, with the average serving as a benchmark for sale. Lenders typically favour liquidation if bids fall below the liquidation value.

Previous Offers

Lenders had last year rejected a ₹227 crore offer from National Asset Reconstruction Co (NARCL) for Jaypee Cement's debt, terming it too low. Earlier, the NCLT approved the Adani Group's ₹14,535 crore resolution plan for Jaypee Associates, supported by majority lender NARCL with an 85% voting share. Lenders then rejected a rival bid from Vedanta offering ₹3,400 crore higher in value.

Claims and Capacity

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. 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 in Andhra Pradesh and another 25 MW unit under implementation.