Vedanta to acquire 1200MW power plant through Insolvency Resolution Process

Vedanta Limited shall be undertaking acquisition of 'Athena Chhattisgarh Power Limited'.

Athena Chhattisgarh Power Limited ("Company or Athena or Corporate Debtor") is a 1200MW coal-based power plant located at Jhanjgir Champa district, Chhattisgarh, at a distance of ~80kms from BALCO and ~180kms from Jharsuguda. The Plant has 2 units of 600MW each.

Unit 1 and Unit 2 are ~80% and ~30% complete respectively and therefore, the Company has never been operational.

The Plant is well connected to national highways and railway stations and is also located in close proximity to its water source, Mahanadi River and fuel source.

Athena was admitted under Corporate Insolvency Resolution Process ("CIRP") on 15th May 2019 and on 13th May 2021, NCLT Hyderabad bench directed initiation of the Liquidation process of the Company.

The acquisition will fulfill the power requirement at for Vedanta Aluminium Business and via vertical integration add synergies by providing a cost advantage pertaining to power consumption.

The Purchase Price is INR 564.67 Crore.

Shares of Vedanta Limited was last trading in BSE at Rs. 227.70 as compared to the previous close of Rs. 214.50. The total number of shares traded during the day was 1306804 in over 17929 trades.

The stock hit an intraday high of Rs. 229.00 and intraday low of 216.00. The net turnover during the day was Rs. 290395522.00.

Source : Equity Bulls

Keywords

Vedanta INE205A01025 VEDL Acquisition CIRP AthenaChhattisgarhPower 1200MW Coalbased PowerPlant