JSW Energy emerged as the highest bidder for KSK Mahanadi Power, offering Rs 15,985 crore to financial creditors and surpassing Adani Power in an auction concluded on Saturday.
The two-day bidding event featured six companies competing for KSK Mahanadi Power. Adani Power withdrew after submitting a final bid of Rs 15,885 crore in the 10th round. JSW Energy, the only bidder in the 11th round, surpassed Adani’s offer by Rs 100 crore with a bid of Rs 15,985 crore.
JSW and Adani proposed a 26% equity stake to lenders and an additional Rs 100 crore for operational creditors. Capri Global, a financial services firm, also participated but withdrew with a final bid of Rs 15,850 crore in the 10th round.
Other participants included Jindal Power, Vedanta, and the government-owned NTPC Ltd., who remained active until the 9th round.
The resolution professional admitted financial creditors’ claims of Rs 29,330 crore. The immediate recovery for lenders is estimated at around Rs 26,485 crore, or 90%, combining JSW’s offer with additional cash and receivables of Rs 10,500 crore. Including the 26% equity stake, total recovery could exceed 100%, according to a lender.
In August, the National Company Law Tribunal (NCLT) approved the distribution of Rs 6,400 crore in cash from the company’s assets.
This acquisition will be JSW Energy’s third major acquisition in the power sector. KSK Mahanadi Power, located in Chhattisgarh, operates three coal-based units of 600 MW each.
After the auction, JSW Energy and other bidders will submit a final resolution plan for lender approval. The resolution professional set a reserve price of Rs 12,500 crore, based on Adani Power’s initial high bid of Rs 27,000 crore, which included immediate payment and cash reserves.
Due to legal issues, KSK Mahanadi’s debt resolution has faced delays since entering NCLT proceedings in 2019. Verified claims total Rs 16,165 crore, and about a dozen lenders sold their debts to asset reconstruction companies (ARCs) amid delays.
Six ARCs hold 54.4% of verified claims, with Aditya Birla ARC controlling 34%. In India’s insolvency process, a minimum of 66% lender approval is needed to pass a resolution, allowing stakeholders with over 34% to block it.
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