Adani Group’s Rs 12,500 Crore Bid Spurs Fierce Competition for KSK Mahanadi Power - Read Now
The group's Rs 12,500 crore bid for KSK Mahanadi Power is triggering a bidding battle as its rivals have upped their offers to stay in the race for the key power asset. High and substantially above others indicates commitment from Adani to the asset in Chhattisgarh. According to reports, KSK Mahanadi Power with an installed capacity of 1,800 MW had slid into the IBC process way back in 2019, as its debt accumulation mounted to Rs 29,330 crore.
Adani Group Sets High Benchmark Through First Round Bid
The opening offer from Adani of Rs 12,500 crore reset the competitive benchmark and restarted interest for KSK Mahanadi Power among its other leaders like NTPC, JSW Energy, Jindal Power, Vedanta, and Coal India. Applying the challenge mechanism under CoC ensured six out of ten initial bidders submitted a revised offer that approached Adani's offer and probably increases the final valuation of an asset.
CoC Challenge Mechanism Aims for Full Recovery
The CoC's challenge mechanism has allowed a competitive process in which lenders can recover as rare as 92% of dues under the IBC framework. The reasons are that the offer by Adani coupled with KSK Mahanadi cash reserve of Rs 10,000 crore and trade receivables worth Rs 4,000 crore have allowed the recovery of dues. The CoC has indirectly provided a semblance of competition to the asset which has enhanced the market value of the asset.
Other Bidders and Re-Submission Bid for KSK Mahanadi Power
The biddings from other participants, which include JSW Energy, Jindal Power, Vedanta, NTPC, and Coal India, were between Rs 6,500 crore to Rs 7,700 crore. This is still much lesser than the re-submitted offer of Rs 7,350 crore by Adani. The offer from Adani Group has majorly impacted the race, wherein other players have submitted better bids for KSK Mahanadi Power also; hence, competition and further recovery for lenders.
This will be the climax to how the Adani Group's Rs 12,500 crore bid has increased interest in KSK Mahanadi Power and catapults the acquisition to a high all-time milestone for the Indian energy and power industries. The competitive bidding shall impart an immense amount that is required to determine the final sales value at the IBC auction, and this constitutes a critical moment where such a deal shall be an exhibit to the value and promise distressed power assets carry within themselves.
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