Debt-laden power company Meenakshi Energy is set to be acquired by Anil Agarwal’s Vedanta Limited after its Rs 1,440 crore bid went through.
In an exchange filing, Vedanta said that Rs 312 crore is set to be paid upfront, while the balance Rs 1,128 crore will be in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy, which will mature in equal instalments over the next five years.
Meenakshi Energy, a 1000-megawatt coal power plant in Andhra Pradesh’s Nellore went under insolvency resolution back in 2019, with proceedings likely to conclude with Vedanta’s purchase.
“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.
Phase I of 300 MW (2×150 MW – Unit 1 and 2) is completed. Remaining Phase II of 700 MW (2×350 MW – Unit 3 and 4) is pending to be tested and declared commercial operation date.
The revenue of Meenakshi Energy Limited for the last three consecutive years were Rs 201 Crores (FY22), Rs 95 Crores (FY 2021) and Rs 12 Crores (FY20), respectively.
The acquisition will be completed by FY 2024. However, the approval of the National Company Law Tribunal (NCLT) is pending.
Source: Economic Times