Vedanta emerges as top bidder for Meenakshi Energy at Rs 1,143 crore

6 Jan 2023 , 09:33 AM

Vedanta, led by Anil Agarwal, made the highest bid of Rs1,143 crore for insolvent thermal power company Meenakshi Energy in an auction held by lenders on Wednesday, stated the reports.

According to the sources, Jindal Power and Steel, which was also in the race, did not participate in the auction.

The resolution professional established a price threshold of 1,143 crore, at which Vedanta submitted a bid. According to the sources, JPSL had previously offered Rs859 crore on a net present value basis, which was calculated after discounting future cash flows.

According to one of the people cited above, Vedanta’s offer includes a Rs312 crore upfront payment to lenders and the remainder paid in equal instalments over the next five years. According to the same source, Jindal Power’s Rs859 crore offer included Rs149 crore upfront, with the remainder paid in equal instalments over eight years.

A Swiss Challenge auction was held last October after the government-owned National Asset Reconstruction Company Ltd (NARCL) made an offer of Rs1,003 crore for Meenakshi Energy.

At around 9.36 AM, Vedanta was trading at Rs313.50, up by 0.69% against the previous close of Rs311.35 on NSE. The counter opened at Rs312.25 and touched an intraday high and low of Rs314.50 and Rs312 respectively, so far.

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