Vedanta to acquire Meenakshi Energy for Rs 1,440 crore

Vedanta said the approval of National Company Law Tribunal is pending.

Billionaire Anil Agarwal-led Vedanta Ltd will acquire debt-laden power plant Meenakshi Energy for Rs 1,440 crore, the company said in an exchange filing on January 18 after it emerged as the successful bidder.

Meenakshi Energy is a 1,000-MW coal-based power plant at Nellore in Andhra Pradesh. It was admitted under insolvency resolution and the proceedings commenced on November 7, 2019.

According to the filing, Rs 312 crore is to be paid 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.

"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 also added that the approval of National Company Law Tribunal (NCLT) is pending.

Meenakshi Energy Limited was incorporated on August 21, 1996. The Plant has two phases. Phase I is complete and Phase II is pending. Its commercial operation date is yet to be declared.

Meanwhile, shares of Vedanta Ltd closed 2.08 percent higher at Rs 324.10 apiece on BSE on January 18 . The stock had closed at Rs 317.5 in the previous session.

The stock's 52-week high price stood at Rs 440.75 and the 52-week low price at Rs 206.1.