Adani Power acquires yet another energy company through CIRP

Adani Power, which recently acquired yet another power company – Coastal Energen – in consortium with Dickey Alternative Investment Trust, has a strong record of accomplishment of acquisition and turnaround of distressed companies post acquisitions.

Here’s a list of acquisition of distressed assets by Adani Power:

Mahan Energen Limited (formerly known as Essar Power MP Limited): Adani Power Limited successfully acquired the 1200 MW thermal power plant under the provisions of the Code. The committee of creditors of Essar Power MP Limited approved the resolution plan of Adani Power Limited and subsequently the Principal Bench of the NCLT approved the same vide order dated November 1. 2021. Adani Power Limited has implemented the approved resolution plan on March 16, 2022.

Raigarh Energy Generation Limited (formerly known as Korba West Power Company Ltd): Adani Power Limited successfully acquired the 600 MW subcritical thermal power plant under the provisions of the Code. The committee of creditors of Korba West Power Company Limited approved the resolution plan of Adani Power Limited and subsequently the Ahmedabad Bench of NCLT approved the same. Post-acquisition, Adani Power Limited has implemented the approved resolution plan and has revived the plant, which was closed for 2 years before initiation of CIRP due to major failure of the generator. Raigarh Energy Generation Limited has been amalgamated with APL under a scheme of amalgamation.

Raipur Energen Limited (formerly known as GMR Chhattisgarh Energy Limited (GCEL): Adani Power Limited acquired the 1.370 MW supercritical thermal power plant. Equity stake in GCEL was acquired from its consortium of lenders, following the approval of APL’s resolution plan to acquire a controlling equity stake and restructure its debt. The balance equity stake was acquired from the GMR Group. The acquisition of GCEL was concluded at an enterprise valuation of approx. Rs. 3,550 Crore. Post-acquisition, APL injected necessary working capital, procured spares and has been successfully operating the plant since its acquisition. Raipur Energen Limited has been amalgamated with APL under a scheme of amalgamation.

Adani Electricity Mumbai Ltd: Erstwhile Adani Transmission Ltd (ATL) acquired Reliance Infrastructure’s integrated utility comprising of generation, transmission and retail electricity distribution. The integrated utility includes the power generation units based at Dahanu, power transmission network across Maharashtra including Mumbai and the retail power distribution network in Mumbai suburbs. The newly acquired business was integrated in Adani Electricity Mumbai Land (AEML). The distribution network of AEMI, spans over 400 Sq. kms catering to the electricity needs of over 3 million customers today.

Udupi Power Corporation Limited: Adani Power acquired the 1,200 MW power plant from Lanco Infratech Limited in April 2015. Adani Power Limited has implemented its high standards of project operations to help improve the project life and operating parameters. The present credit rating of Udupi Power Company limited is A- (A minus). Udupi Power Corporation Limited has been amalgamated with APL under a Scheme of Amalgamation.

Lanco Amarkantak Power: The Adani group firm recently acquired 1,620 MW Chhattisgarh-based Lanco Amarkantak Power by paying of Rs 4,101 to creditors of the corporate debtor against their total admitted claims of Rs 15,190 crore.