Adani Power has made the highest bid of ₹27,000 crore for KSK Mahanadi Power’s 1,800-megawatt plant, which is undergoing insolvency proceedings. This bid ensures a 92% recovery for the lenders.
By Thursday evening, banks had received a total of 10 bids for the thermal power company. Other bidders include Capri Global Holdings, Coal India, NTPC, Vedanta, JSW Energy, Jindal Steel & Power, iLab India Special Fund, Rashmi Metaliks, and Sherisha Technologies.
Adani Power’s offer consists of ₹12,500 crore in upfront cash, ₹9,000 crore from the company’s accumulated cash (as three of its units are operational), and an estimated ₹5,500 crore in receivables.
Capri Global Holdings made the second highest bid, offering ₹25,000 crore, which includes the company’s cash, receivables, and an upfront payment. NTPC’s bid was third highest at ₹22,200 crore, with ₹7,700 crore as upfront payment and ₹14,500 crore in cash and receivables.
The resolution professional at KSK Mahanadi Power, along with Adani Power and NTPC, did not comment on the matter. Capri Global confirmed its commitment to acquiring the company through its stressed asset fund.
The resolution professional, supported by PWC, has admitted ₹29,330 crore in claims from financial creditors. Adani’s actual outgo, according to the plan, is ₹12,500 crore, which is the highest amount offered for a distressed thermal power asset so far.
During a meeting with lenders, 10 plans were disclosed, and banks decided to seek better offers from all bidders and hold an auction. A lender mentioned that banks might receive nearly their entire dues after the auction.
Adani Group had shown interest in acquiring KSK Mahanadi before it entered insolvency in October 2019 but backed out due to tariff changes by the Uttar Pradesh government.
The debt resolution has been delayed due to legal issues, causing lenders to sell their debts to asset reconstruction companies (ARCs). Six ARCs now control 54.4% of verified claims, with Aditya Birla ARC holding the largest share at 33.38%.
The NCLT had paused the sale process in June 2022 after a lender requested a consolidated resolution of KSK Mahanadi Power and its two ancillary companies, KSK Water Infrastructure and Raigarh Champa Rail. The tribunal rejected this proposal, leading to further appeals. After the stay was lifted, the resolution professional invited new bids.
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