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Vedanta Ltd, owned by billionaire Anil Agarwal, will purchase debt-ridden power plant Meenakshi Energy for Rs 1,440 crore, the firm announced in an exchange filing on January 18 after emerging as the victorious bidder.
Meenakshi Energy is a 1,000-MW coal-fired power station in Nellore, Andhra Pradesh. It was admitted under insolvency resolution, and the procedures began on November 7, 2019.
According to the filing, Rs 312 crore would be paid immediately, with the remaining Rs 1,128 crore paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy. The consideration will be paid in five equal instalments over a five-year period.
“Vedanta currently envisages to operate 1000 MW of Meenakshi Energy Limited as IPP to cater to the needs of the market by entering into short or medium-term PPA and by supplying power to merchants. The acquisition shall enhance the Group’s portfolio in power,” the company said in the exchange filing.
However, Vedanta has stated that the permission of the National Company Law Tribunal (NCLT) is still waiting.
Meenakshi Energy Limited was founded on August 21, 1996. The Plant is divided into two stages. Phase I is complete, and Phase II is in the works. Its commercial operating date has yet to be announced.
Meanwhile, Vedanta Ltd shares finished 2.08 percent higher at Rs 324.10 a share on the BSE on January 18. In the previous session, the stock finished at Rs 317.5.
The stock’s 52-week high price was Rs 440.75 and its 52-week low price was Rs 206.1.