Business EconomyPosted at: May 18 2026 8:57PM


Jaypee Cement lenders seek higher bid from Adani Group: Sources

Mumbai, May 18 (UNI) The consortium of lenders with stakes in the bankrupt Jaypee Cement Corporation has initiated talks with the Adani Group seeking an increase in the bid amount, according to official sources.
The development came after the Adani Group-owned Ambuja Cement, which emerged as the sole remaining bidder for bankrupt Jaypee Cement Corporation, after competing bidders pulled out, submitted a US$ 60-million bid offer to purchase the company.
However, the Adani-owned Ambuja Cement's US$ 60-million (Rs 580 crore) bid offer turned out to be significantly lower than the US$ 83-million (Rs 880 crore) liquidation value assigned to the bankrupt Jaypee Cement.
Jaypee Cement entered corporate insolvency in July 2024, after a petition by the State Bank of India. The company possesses an integrated cement capacity of 5 million tonnes per year and operates two captive power plants with a combined capacity of 60MW. Production at its 1.2 metric tonnes per year capacity cement plant located in Shahabad, Karnataka, remains stalled.
The significant gap between the Rs 580 crore offer and the Rs 880 crore liquidation value presents a challenge for Jaypee Cement's lenders, which include the State Bank of India.
Moreover, Jaypee Cement Corporation faces admitted claims totaling Rs 3,361 crore, which worsens the substantial shortfall.
The liquidation value represents what lenders may recover if assets are sold piecemeal, while the fair value reflects the expected price if the business is sold as a going concern.
Typically, lenders favour liquidation if bids fall below the liquidation value. Jaypee Cement’s resolution professional has admitted Rs 3,361 crore of claims, comprising Rs 2,892 crore from secured creditors and Rs 469 crore from unsecured creditors, according to the Insolvency and Bankruptcy Board of India website.
In 2025, Jaypee Cement's lenders had rejected a Rs 227-crore offer from National Asset Reconstruction Company (NARCL) for its debt, terming it too low.
The resolution of Jaypee Cement Corporation's insolvency now depends heavily on the negotiation outcome between lenders and Ambuja Cements. The most likely scenarios involve a revised offer that bridges the gap to the liquidation value or a lender-driven decision towards asset liquidation.
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