Vedanta to buy Meenakshi Energy for Rs1,440 crore; Stock gains over 1%

19 Jan 2023 , 12:08 PM

Vedanta Limited has informed that post submission of bid for Meenakshi Energy Limited, the company 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 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, the company said in a filing on Wednesday.

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.

Accordingly, the consideration payable is Rs1,440 crore and out of the total consideration Rs312 crore shall be paid upfront and balance Rs1,128 crore 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, the company further added in a statement.

At around 12:11 PM on Thursday, Vedanta is currently trading at Rs328.50 per share higher by 1.36% on the BSE.

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