India's Vedanta falls as analysts flag concerns on Jaiprakash Associates deal

Jaiprakash Associates

08/09/2025 10:13

** Shares of Vedanta Ltd VDAN.NS fall 2% to 436 rupees

** The miner outbid Adani Group with 170 billion rupee offer to emerge as top bidder for bankrupt Jaiprakash Associates Ltd JAIA.NS, which is engaged in businesses like engineering, power, real estate, construction and cement, according to multiple media reports

** Analysts at ICICI Securities say that while payment terms for the offer are favourable, JAIA's business portfolio is a mismatch for VDAN's current business

** "In our view, it appears like the cart has been placed before the horse," ICICI Securities says

** Nuvama in a note says not a good strategy to acquire JAIA, adding that VDAN's valuation will suffer

** Getting into unrelated businesses at this point of time when VDAN's priority should be deleveraging is cause for concern - Nuvama

** Including session losses, VDAN down 2% so far in 2025

 (Reporting by Nishit Navin in Bengaluru)

 ((nishit.navin@thomsonreuters.com))