JSW Energy, led by Sajjan Jindal, has won the bidding for KSK Mahanadi Power, offering ₹15,985 crore to financial creditors, outbidding Adani Power, which had offered ₹15,885 crore. The intense two-day auction included six companies, but Adani Power withdrew after the 10th round. In the final 11th round, JSW Energy emerged as the sole bidder, surpassing Adani’s bid by ₹100 crore.
Both JSW and Adani had offered a 26% equity stake to lenders, along with an additional ₹100 crore to operational creditors. Capri Global also participated but exited with a ₹15,850 crore bid. Other bidders included Jindal Power, Vedanta, and NTPC, who were active until the 9th round.
The resolution professional (RP) handling the auction, supported by PwC, has received ₹29,330 crore in claims from financial creditors. With JSW’s bid, lenders could recover about ₹26,485 crore, or 90% of their claims, and potentially over 100% if equity is considered. Earlier this year, the National Company Law Tribunal (NCLT) allowed the RP to distribute ₹6,400 crore cash to creditors.
This marks JSW Energy’s third major acquisition in the power sector, following its purchases of Ind Barath Energy and Mytrah Energy’s renewable portfolio. KSK Mahanadi Power operates three coal-based units of 600 MW each in Chhattisgarh.
Adani Power had been interested in KSK Mahanadi for over six years but had backed out of a previous bid in 2019 due to regulatory changes. The debt resolution process for KSK Mahanadi has faced delays since it was admitted to the NCLT in 2019, partly due to legal challenges.
Now, JSW Energy and the other bidders must submit their final payment structure for the RP to present to lenders for a vote. The auction started with a reserve price of ₹12,500 crore, based on Adani’s initial offer, which included both upfront payments and various receivables.
The resolution process involves 12 lenders who had sold their debts to asset reconstruction companies, which now hold a significant portion of the claims against KSK Mahanadi Power. Under India’s insolvency rules, a resolution cannot pass without the approval of 66% of lenders, making the support of major debt holders crucial for the deal.
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