Indian energy company Adani Power, part of the Adani Group, has emerged as the winning bidder to acquire the debt-ridden Lanco Amarkantak Power, offering Rs41.01bn ($494m), the Economic Times has reported.
Lanco Amarkantak Power, based in the Korba district in the Indian state of Chhattisgarh, is a 1.92GW coal-fired power plant.
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The auction’s outcome was determined after the other two contenders, Reliance Industries and a consortium led by the Power Finance Corporation (PFC), opted not to participate.
Lenders had set the bid from Adani Power as the base price for the auction of the thermal power company.
They required counter-offers to be at least Rs500m higher than the base bid for the auction to continue.
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As no other participants stepped forward, Adani Power’s bid stood unchallenged.
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By GlobalDataThe resolution process for the power plant, which entered corporate insolvency proceedings in September 2019, has faced a series of delays.
In January 2022, lenders rejected a Rs30bn offer from Twin Star Technologies, deeming it insufficient.
The sale process was subsequently restarted, attracting interest from Adani, Reliance Industries and the PFC-led consortium.
In January 2023, a majority of lenders voted in favour of the PFC-led consortium’s bid of Rs30.2bn, but the National Company Law Tribunal withheld its endorsement of the plan for several months.
During this period, Adani Power made an unsolicited offer of Rs36.5bn, which was later increased to the winning bid of Rs41.01bn.
The race for Lanco Amarkantak Power saw the exit of Jindal Power in January 2024, as reported by the Economic Times, leaving Adani Power and Reliance as the remaining contenders.
In February 2024, Jindal Power submitted a bid of Rs140bn for the KSK Mahanadi coal power plant in India, which has also attracted the attention of Adani Power and Anil Agarwal’s Vedanta.
