After emerging as a successful bidder, Vedanta is set to acquire debt-laden Meenakshi Energy for INR1,440 crore, the company said in an exchange filing.

Vedanta will pay INR 312 crore upfront while the balance of INR 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 installments over a period of five years, the company said in the filing.

The approval from National Company Law Tribunal (NCLT) is pending. The acquisition is estimated to be completed in the financial year 2024.

Meenakshi Energy Ltd. is a 1000 MW coal-based power plant located in Nellore, Andhra Pradesh.

The revenue of Meenakshi Energy for the last three consecutive years stood at INR 12 crore in the financial year 2020, INR 95 crore in the financial year 2021, and INR 201 crore in the financial year 2022. The company admitted under Corporate Insolvency Resolution Process in terms of the Insolvency and Bankruptcy Code, 2016 (“IBC”) and the insolvency proceedings commenced on 7th November, 2019. The bid submitted by Vedanta Limited was approved by the committee of creditors via letter of intent dated 18 January, 2023.

Vedanta currently envisages to operate 1,000 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.