Shares of Vedanta Ltd., the Anil Agarwal-owned mining conglomerate, fell 2.15% on Monday, September 8, to trade at ₹435.90 on the NSE, after reports emerged that the company has outbid the Adani Group in the race for Jaiprakash Associates with a ₹17,000 crore offer.
According to CNBC-TV18, Vedanta emerged as the highest bidder in the open challenge round under the Insolvency and Bankruptcy Code (IBC). Jaiprakash Associates currently faces claims worth ₹59,000 crore from multiple creditors, led by the National Asset Reconstruction Company Ltd. (NARCL). The reserve price for the open challenge was set at ₹12,000 crore.
While Vedanta’s bid beat Adani, other interested players such as Dalmia Bharat Group, Jindal Power, and PNC Infratech did not submit offers in the final round. Sources said lenders have also sought assurances that additional sums would be paid if the Yamuna Expressway Industrial Development Authority (YEIDA) land dispute is resolved in Jaiprakash’s favour.
Brokerage Nuvama flagged the development as a negative for minority shareholders, questioning the rationale behind Vedanta moving into an unrelated business when its priority should be deleveraging. The firm added that funding the entire ₹17,000 crore amount under the demerged Vedanta entity could be challenging. “Culmination of the transaction is likely to restrict any re-rating for the stock,” Nuvama said in a note.
On the other hand, Citi has maintained a “buy” rating on Vedanta with a ₹500 price target, stating that while uncertainties persist, they could create only a temporary overhang on the stock.
Vedanta recently announced a ₹16 per share interim dividend, marking its second payout for the year. As of the June quarter, Vedanta counted over 20 lakh small retail investors (holding up to ₹2 lakh each) representing 11.64% stake, while promoters hold 56.38%.
