Vedanta’s pursuit of acquiring Meenakshi Energy through the insolvency resolution process has garnered the approval of the National Company Law Tribunal (NCLT) Hyderabad bench, as reported last week. Earlier this year, on January 18, Vedanta emerged as the successful bidder for debt-laden Meenakshi Energy Limited.
Vedanta, under the leadership of Anil Aggarwal, committed to a payment of Rs 1,440 crore for the acquisition of Meenakshi Energy, as detailed in Vedanta’s BSE filing. The filing highlighted Vedanta Limited’s intention to secure 100% of the paid-up capital and management control of Meenakshi Energy Limited.
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Meenakshi Energy owns a coal-based power plant of 1,000 MW in Nellore, Andhra Pradesh. Vedanta’s strategy involves operating the power plant as an independent power producer and establishing power purchase agreements with customers. The acquisition consideration involves an upfront payment of Rs 312 crore, with the remaining Rs 1,128 crore structured as secured unlisted non-convertible debentures issued by Meenakshi Energy to financial creditors. This amount will be disbursed over five years in equal installments.
