FILE PHOTO: A bird flies past the logo of Vedanta installed on the facade of its headquarters in Mumbai, India January 31, 2018. REUTERS/Danish Siddiqui/File Photo
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DANISH SIDDIQUI
Mining mogul Anil Agarwal’s Vedanta Ltd is eyeing full control of Jaiprakash Power Ventures Ltd (JPVL), the profit-making power arm of debt-laden Jaiprakash Associates Ltd (JAL).
The metals-to-mining conglomerate is preparing to weigh in on a possible auction for additional stakes in JPVL, in a move that could set the stage for what market observers describe as a potentially hostile takeover.
Lenders of Jaiprakash Power Ventures had previously approached a few bidders of Jaiprakash Associates including Adani, sources said. Some alternative asset investment funds are also in fray.
Top bidder
Vedanta is the top bidder for debt-ridden Jaiprakash Associates. It emerged H1, tipping Adani, with its bid having a net present value of ₹12,505 crore. If its resolution plans go through, the mining moghul’s conglomerate would end up with a 24 per cent stake in Jaiprakash Power.
Sources in the know said Vedanta is considering throwing in its hat to bid or buyout around ₹3,800 crore of compulsorily convertible preference shares (CCPS) issued by lenders of the Jaiprakash Power Ventures, with ICICI Bank being the lead banker. This would be convertible into equity, roughly 25 per cent stake in the company.
Some of the bidders for Jaiprakash Associates told businessline that they would not like to participate in the CCPS, post Friday’s bidding process’ outcome.
Put together, the stake would be roughly 49 per cent.
The CCPS upon conversion could provide the winning bidder with a 25 per cent stake in JP Power. The conversion will trigger an open offer for a further 26 per cent stake in the company, as per the SEBI’s guidelines.
“Yes, Vedanta is evaluating bidding for the CCPS; but nothing has been finalised,” said a source.
A banker, requesting anonymity, said some discussions on the CCPS and bids could take next week onwards.
“With Jaiprakash Associate’s power, cement and real estate assets, the acquisition could be Vedanta’s opportunity for unlocking value,” a market source said.
Vedanta is yet to respond to queries by businessline.
Jaiprakash Power Restructuring
Jaiprakash Power Ventures (JPVL) is a listed, profitable entity that went through a debt restructuring in 2019. Under the plan, lenders, led by ICICI Bank, had been issued compulsorily convertible preference shares, a form of investment, into the company for around ₹3,800 crore. These CCPS could be converted into equity stake at a later stage, generally post end of a certain time period.
JPVL had for the quarter ending June 30, FY26, reported a ₹1,584 crore revenue from operations, down 10 per cent, y-o-y. Net profit was ₹278 crore, down 20 per cent y-o-y.
Earnings from the power vertical stood at ₹1,584 crore, while the segment profit was at ₹644 crore.
The company in a note to its accounts said in earlier years, it had given the corporate guarantee to State Bank of India of $1,500 lakh against loans granted by SBI to the parent company, JAL.
JPVL said it has written to SBI that in view of CIRP process (corporate insolvency) against JAL has been started, the DRT (Debt Recovery Tribunal) proceedings against the borrowers (JAL) will be on hold.
Further, the company has also filed its claim to the tune of $1,500 lakh (equivalent to ₹1,240 crore — converted at the exchange rate of ₹82.61) with Resolution Professional of JAL, against the said corporate guarantee, which was considered/taken on record to the extent of ₹512 crore (as provisional contingent amount).
Published on September 7, 2025