After eyeing on for 6 years for this power company, finally Gautam Adani led Adani group has withdrawn its bid, according to a report.
Gautam Adani has been rapidly expanding his group, acquiring 11 companies this year alone and preparing for a 12th acquisition. However, despite his close try, Adani missed out on acquiring a key power company he has eyed for six years.
The competition for KSK Mahanadi Power saw bids from six companies, including Gautam Adani’s Adani Power, Sajjan Jindal’s JSW Energy, Naveen Jindal’s Jindal Power, Anil Agarwal’s Vedanta, state-owned NTPC Limited, and financial services firm Capri Global. JSW Energy ultimately won the bid, surpassing its competitors to secure the company, According to a Navbharat Times report.
Adani Withdrew Rs 15,885 Crore Bid
The auction process spanned two days, involving six companies. Adani Power withdrew after making a final offer of Rs 15,885 crore in the 10th round. JSW Energy then outbid Adani in the 11th round with an offer Rs 100 crore higher. Both JSW Energy and Adani Power offered lenders 26% equity and Rs 100 crore to operational creditors.
Adani’s Six-Year Efforts For Company
Gautam Adani had been pursuing KSK Mahanadi Power for more than six years. In late 2018, Adani Group initially offered Rs 10,300 crore but withdrew in February 2019 after the Uttar Pradesh government lowered tariffs. Under the Insolvency and Bankruptcy Code, Adani Group has acquired at least three power companies, including Avantha Power’s Korba West Power, Coastal Energen, and Lanco Amarkantak Power. However, in the case of KSK Mahanadi Power, Adani’s long pursuit ended without success.
JSW Energy Wins Highest Bid
According to a Navbharat Times report, JSW Energy placed the highest bid for KSK Mahanadi Power, offering financial creditors Rs 15,985 crore. In the auction, which concluded on Saturday, JSW Energy emerged as the top bidder for the power company’s assets. KSK Mahanadi Power operates three coal-based units in Chhattisgarh, each with a capacity of 600 MW.
Capri Global exited in the 10th round after a final bid of Rs 15,850 crore, while Jindal Power, Vedanta, and NTPC exited after the 9th round. The resolution professional has accepted claims of Rs 29,330 crore from financial creditors, with an anticipated recovery of around Rs 26,485 crore, or approximately 90%. JSW’s offer includes Rs 15,985 crore in cash and Rs 10,500 crore in undisputed fund receivables. A lender noted that with the 26% equity stake included, the recovery could exceed 100%.