Vedanta Ltd declared successful bidder for Meenakshi Energy Ltd

Post submission of bid for Meenakshi Energy Limited under Corporate Insolvency Resolution Process ("CIRP") under IBC, Vedanta Limited has been declared successful bidder on January 18, 2023 subsequent to which Board of Directors of Vedanta Limited has approved the acquisition of Meenakshi Energy Limited.

Meenakshi Energy Limited ("Company or Corporate Debtor") is a 1000MW coal-based power plant located at Nellore, Andhra Pradesh.

Phase I of 300 MW (2*150 MW - Unit 1 & 2) is completed. Remaining Phase II of 700 MW (2*350 MW - Unit 3 & 4) is pending to be tested and declare COD.

Vedanta currently envisages to operate 1000 MW of Meenakshi Energy Limited as IPP to carter 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 consideration payable is INR 1,440 Crores. Out of the total consideration INR 312 Cr shall be paid upfront and balance INR 1,128 Cr in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy Limited to the Financial Creditors to be repaid in 5 equal installments over a period of 5 years starting from the end of 2nd year.

Shares of Vedanta Limited was last trading in BSE at Rs. 324.10 as compared to the previous close of Rs. 317.50. The total number of shares traded during the day was 414383 in over 5951 trades.

The stock hit an intraday high of Rs. 325.65 and intraday low of 317.80. The net turnover during the day was Rs. 133763393.00.

Source : Equity Bulls

Keywords

Vedanta INE205A01025 VEDL IBC Acquisition MeenakshiEnergy CIRP