NARCL's Rs.10,000 Crore Proposal for Jaiprakash Associates' Debt
ECONOMY & POLICY

NARCL's Rs.10,000 Crore Proposal for Jaiprakash Associates' Debt

The National Asset Reconstruction Company of India (NARCL) has put forth a groundbreaking proposal to acquire the debt of Jaiprakash Associates from banks for a staggering ?10,000 crore. This marks the largest offer to date by the government-backed asset reconstruction company (ARC), which commenced operations just over two years ago.

If a majority of lenders agree to sell their debt, NARCL will acquire Jaiprakash Associates Ltd (JAL)'s various businesses spanning cement, hospitality, real estate, fertiliser, and construction sectors. JAL, a flagship company of the Jaypee Group led by Manoj Gaur, is at the center of this significant transaction.

In the fiscal year 2023, NARCL successfully acquired 62% of Jaypee Infratech's debt, offering lenders a notable 39% recovery through an uncontested Swiss challenge auction.

Among the major lenders to JAL, State Bank of India holds the largest debt share at 26%, followed by ICICI Bank at 19%, and IDBI Bank at 11%. As of March 2023, the company's total principal outstanding debt stood at ?17,700 crore. Notably, NARCL's offer of ?10,000 crore excludes the debt held by Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE).

The government-backed ARC has been actively pursuing distressed assets in recent months, with this proposed deal marking its most substantial acquisition to date. Over the past three months, NARCL has either acquired or is in the process of acquiring at least a dozen such loan accounts.

Jaiprakash Associates is one of the 28 accounts directed by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code in 2017. While IDBI Bank initiated the resolution process at the National Company Law Tribunal (NCLT), SBI filed a separate petition in September 2022. However, the NCLT has yet to admit these pleas, as negotiations for an out-of-court settlement between the promoters and lenders continue.

This proposed acquisition by NARCL not only signifies a significant step in resolving distressed assets but also underscores the ongoing efforts to streamline the Indian banking sector.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

The National Asset Reconstruction Company of India (NARCL) has put forth a groundbreaking proposal to acquire the debt of Jaiprakash Associates from banks for a staggering ?10,000 crore. This marks the largest offer to date by the government-backed asset reconstruction company (ARC), which commenced operations just over two years ago. If a majority of lenders agree to sell their debt, NARCL will acquire Jaiprakash Associates Ltd (JAL)'s various businesses spanning cement, hospitality, real estate, fertiliser, and construction sectors. JAL, a flagship company of the Jaypee Group led by Manoj Gaur, is at the center of this significant transaction. In the fiscal year 2023, NARCL successfully acquired 62% of Jaypee Infratech's debt, offering lenders a notable 39% recovery through an uncontested Swiss challenge auction. Among the major lenders to JAL, State Bank of India holds the largest debt share at 26%, followed by ICICI Bank at 19%, and IDBI Bank at 11%. As of March 2023, the company's total principal outstanding debt stood at ?17,700 crore. Notably, NARCL's offer of ?10,000 crore excludes the debt held by Ares SSG Capital-backed Asset Care & Reconstruction Enterprises (ACRE). The government-backed ARC has been actively pursuing distressed assets in recent months, with this proposed deal marking its most substantial acquisition to date. Over the past three months, NARCL has either acquired or is in the process of acquiring at least a dozen such loan accounts. Jaiprakash Associates is one of the 28 accounts directed by the Reserve Bank of India to be resolved under the Insolvency and Bankruptcy Code in 2017. While IDBI Bank initiated the resolution process at the National Company Law Tribunal (NCLT), SBI filed a separate petition in September 2022. However, the NCLT has yet to admit these pleas, as negotiations for an out-of-court settlement between the promoters and lenders continue. This proposed acquisition by NARCL not only signifies a significant step in resolving distressed assets but also underscores the ongoing efforts to streamline the Indian banking sector.

Next Story
Infrastructure Urban

Bain Capital Invests in Dhoot Transmission Group to Accelerate Growth

Dhoot Transmission Group, a prominent manufacturer of automotive components, has announced a strategic growth investment from Bain Capital. This partnership with founder and CEO Rahul Dhoot will leverage Bain Capital's automotive expertise to drive innovation, expand global reach, and explore high-growth segments through acquisitions and partnerships.Founded in 1999, Dhoot Transmission Group specializes in manufacturing wiring harnesses for two-wheelers, three-wheelers, and other vehicles, including both internal combustion engine (ICE) and electric vehicle (EV) segments. The company has diver..

Next Story
Infrastructure Energy

Indian Oil Corp Eyes Sour Crude from Spot Market

Indian Oil Corporation (IOC), the largest oil refiner in India by capacity, is actively seeking to procure high-sulphur crude oil through spot tenders. This marks the company's first initiative to import sour crude oil since March 2022, according to insights shared by trade sources on Thursday. Sour crude, known for its higher sulphur content, is commonly used by complex refineries capable of processing such grades efficiently. In addition to the sour crude tender, IOC has also floated a separate tender for sweet crude oil, a variety with lower sulphur content that typically requires less int..

Next Story
Infrastructure Urban

Indian Carmakers Gear up for EV Push in 2025 Despite Global Slowdown

Automakers in India are preparing to launch nearly a dozen new electric car models this year, many targeting the premium market. These vehicles are expected to feature extended driving ranges and faster charging capabilities, aimed at attracting consumers amid a global slowdown in demand for electric vehicles (EVs). Electric cars are set to dominate India's five-day auto show in New Delhi starting Friday. The event will showcase models from Vietnamese newcomer VinFast, alongside domestic players such as Maruti Suzuki and Mahindra & Mahindra, as well as international competitors including BYD,..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000