NARCL raises offer for Jaiprakash Associates' debt to Rs 120 billion
ECONOMY & POLICY

NARCL raises offer for Jaiprakash Associates' debt to Rs 120 billion

The National Asset Reconstruction Company Ltd (NARCL), the government-backed bad loan aggregator, has raised its offer to acquire Jaiprakash Associates' (JAL) debt to Rs 120 billion. This new bid comes even as JAL's appeal against its insolvency admission is pending with the National Company Law Appellate Tribunal (NCLAT).

NARCL's revised bid, up from an initial Rs 100 billion in March, follows a recent valuation of JAL’s Rs 540 billion debt. According to sources, the revised offer includes an upfront payment of Rs 18 billion (15%) in cash, with the remaining 85% in security receipts guaranteed by the government and valid for five years.

The updated proposal was submitted just before Diwali, after NARCL completed its valuation, now with more clarity on creditor claims. However, banks, including major creditor State Bank of India (SBI) with Rs 155 billion and lead lender ICICI Bank with Rs 105 billion in claims, have yet to discuss the new offer. Both banks are also conducting independent valuations to guide their negotiations with NARCL.

JAL’s assets include cement plants, real estate near the Yamuna Expressway, hotels, EPC operations, power plants, and the Buddha International Circuit. This insolvency case, which began after a 2018 plea by ICICI, has faced extensive delays due to litigation from JAL's promoters. NARCL’s offer could expedite resolution by consolidating debt under one entity, potentially overcoming the protracted negotiations typically involved in multi-creditor cases.

This offer coincides with NCLAT’s pending decision on JAL’s appeal against the National Company Law Tribunal’s (NCLT) June ruling to initiate insolvency, which itself followed a six-year delay since ICICI’s original filing.

(ET)

The National Asset Reconstruction Company Ltd (NARCL), the government-backed bad loan aggregator, has raised its offer to acquire Jaiprakash Associates' (JAL) debt to Rs 120 billion. This new bid comes even as JAL's appeal against its insolvency admission is pending with the National Company Law Appellate Tribunal (NCLAT). NARCL's revised bid, up from an initial Rs 100 billion in March, follows a recent valuation of JAL’s Rs 540 billion debt. According to sources, the revised offer includes an upfront payment of Rs 18 billion (15%) in cash, with the remaining 85% in security receipts guaranteed by the government and valid for five years. The updated proposal was submitted just before Diwali, after NARCL completed its valuation, now with more clarity on creditor claims. However, banks, including major creditor State Bank of India (SBI) with Rs 155 billion and lead lender ICICI Bank with Rs 105 billion in claims, have yet to discuss the new offer. Both banks are also conducting independent valuations to guide their negotiations with NARCL. JAL’s assets include cement plants, real estate near the Yamuna Expressway, hotels, EPC operations, power plants, and the Buddha International Circuit. This insolvency case, which began after a 2018 plea by ICICI, has faced extensive delays due to litigation from JAL's promoters. NARCL’s offer could expedite resolution by consolidating debt under one entity, potentially overcoming the protracted negotiations typically involved in multi-creditor cases. This offer coincides with NCLAT’s pending decision on JAL’s appeal against the National Company Law Tribunal’s (NCLT) June ruling to initiate insolvency, which itself followed a six-year delay since ICICI’s original filing. (ET)

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code