Meenakshi Energy, a debt-ridden power business, is expected to be acquired by Anil Agarwal's Vedanta Limited after its Rs 1,440 crore deal was accepted. According to a filing with the exchange, Vedanta will pay Rs 312 crore immediately and the remaining Rs 1,128 crore would be paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy
that will mature in equal instalments over the course of the following five years. Meenakshi Energy, a 1000 megawatt coal power plant in Nellore, Andhra Pradesh, filed for insolvency resolution earlier in 2019. Vedanta's acquisition is likely to be the outcome of the proceedings. "Vedanta currently plans to operate Meenakshi Energy Limited's 1000 MW as an independent power producer (IPP) to meet market demand by entering into short- or medium-term PPA and by providing power to retailers. The acquisition will increase the Group's power portfolio, "According to the company's exchange report.
Phase I of 300 MW (2x150 MW – Unit 1 and 2) is completed. Remaining Phase II of 700 MW (2x350 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. By FY 2024, the acquisition will be finished. The National Company Law Tribunal's (NCLT) approval, however, is still waiting. On the BSE, Vedanta Ltd. shares closed 2.08% higher at Rs. 324.10.
