Kolkata: Jaiprakash Associates, once a high-profile real estate company, was crippled by an unsustainable debt burden when Adani Enterprises submitted a bid to acquire it. While it provided a silver lining for the company which was undergoing bankruptcy proceedings, the latest development is NCLT has approved the offer from Adani Enterprises. However, the deal will be of no help to existing shareholders of Jaiprakash Associates.

According to a news report, NCLT approved Adani Enterprises’ resolution plan on March 17. According to the this plan, the existing equity share capital of Jaiprakash Associates, preference shares, convertible instruments and warrants will all be cancelled and no compensation will be paid for them. This decision will result in no payout to existing shareholders. This means that the stake of both public shareholders and promoters will be reduced to zero. The company’s free-float market value was approximately Rs 404 crore, which will be now almost completely eroded.

Number of shareholders affected

According to the report, this will directly impact approximately 645,466 public shareholders. The total free-float value of these investors is estimated to be approximately Rs 404.68 crore. The IBC process will cancel all of the company’s old shares. This means that those who purchased Jaiprakash Associates shares will not receive any money at all.

The company is so heavily indebted that even after selling assets, banks and major lenders are unable to fully recover their outstanding debt. Consequently, shareholders will lose all the value. The next step will be delisting the company’s shares, and necessary corporate action can be completed within 90 days.

Other bidders

Incidentally, Vedanta and Dalmia Bharat were also contenders in the resolution process deal. However, the Adani Group received 89% of the vote from creditors. JAL went into CIRP in June 2025 after defaulting on debt of Rs 57,185 crore.