UltraTech Settles JAL Dispute, Redeems ₹1,000 Crore Shares

• UltraTech to redeem ₹1,000 crore preference shares linked to Dalla cement asset
• Settlement supports Jaypee asset monetisation after Adani takeover approval
• Move likely to reduce Adani Group’s upfront cash outflow

UltraTech Cement has resolved its long-pending dispute with Jaiprakash Associates (JAL) by agreeing to redeem preference shares worth ₹1,000 crore.

The dispute, which had been under arbitration, was linked to the Dalla Super cement plant in north-central India. The issue dates back to 2017, when UltraTech issued preference shares as part of a transaction but later delayed redemption due to pending regulatory approvals. JAL challenged the delay, leading to arbitration proceedings that have now been settled amicably outside the court.

This resolution comes at a crucial time, shortly after the National Company Law Tribunal (NCLT) approved the acquisition of JAL by Adani Enterprises. The Adani Group has proposed a ₹14,535 crore resolution plan to acquire the debt-laden company under the insolvency process.

Industry sources indicate that the ₹1,000 crore payout will be routed through an escrow mechanism, ensuring that the funds are directly allocated to lenders. This structure aligns with insolvency norms and ensures transparency in the monetisation of assets.

The settlement is expected to ease the financial burden on Adani Group by reducing its immediate cash outflow under the resolution plan. Even if documentation is completed before full payment to creditors, proceeds from such settlements will continue to be directed toward lenders, maintaining regulatory compliance.

Experts believe this move will accelerate the monetisation of Jaypee Group’s assets and help streamline the ongoing insolvency resolution process. It also signals improved coordination among major corporate stakeholders involved in one of India’s high-profile debt resolution cases.

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