By Rajat Mishra
Vedanta is set to acquire debt-laden Meenakshi Energy for Rs 1,440 crore, the company said in an exchange filing on January 18, after it emerged as the successful bidder.
Vedanta will pay Rs 312 crore upfront while the balance of Rs 1,128 crore will be paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy. The consideration will mature in five equal instalments over a period of five years, the company said.
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Meenakshi Energy has a 1,000-MW coal-based power plant in Nellore, Andhra Pradesh. It was admitted under insolvency resolution and the proceedings commenced on November 7, 2019. Meenakshi Energy, incorporated in 1996, has two phases. Phase I is complete and Phase II is pending. Its commercial operation date is yet to be declared.
According to the exchange filing, Vedanta currently envisages to operate 1,000 MW of Meenakshi Energy as an independent power producer (IPP) to cater to the needs of the market, by entering into short or medium-term power purchase agreement (PPA) and by supplying power to merchants. The acquisition would enhance the group’s portfolio in power, the company said.
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The company also added that the approval of the National Company Law Tribunal (NCLT) is pending. Meenakshi Energy’s revenue stood at Rs 201 crore in FY22 and Rs 95 crore in FY21. Reportedly, in October 2022, the National Asset Reconstruction Company of India (NARCL), the government-promoted bad bank, gave the lenders of Meenakshi Energy a Rs 900-crore binding offer to acquire its debt.