GMR Chhattisgarh Energy Ltd's lenders have approved an offer by Adani Power Ltd to acquire the debt-laden electricity generation company.
The billionaire Gautam Adani-led company said in a stock-exchange filing that a group of lenders led by Axis Bank approved its resolution plan to acquire a controlling stake and restructure the debt of GMR Chhattisgarh.
Adani Power had submitted the resolution plan in response to an invitation issued on behalf of the lenders to GMR Chhattisgarh.
After the transaction, Adani Power will hold a 100% stake in GMR Chhattisgarh. Of this, it will acquire a 52.38% stake from the lenders and the balance from GMR Group.
GMR Chhattisgarh owns an operational 1,370 megawatt thermal power plant at Raikheda in Raipur district of Chhattisgarh. The plant consists of two units of 685 MW each, commissioned in June 2015 and April 2016, respectively.
Adani on buying spree
The latest acquisition comes within months of Adani Power having been awarded a letter of intent to acquire debt-ridden Korba West Power Co. Ltd earlier in April. Korba West Power operates a 600 MW thermal power project in Raigarh district of Chhattisgarh.
The acquisition of GMR Chhattisgarh and Korba West Power will consolidate Adani Power's position as India's major private-sector thermal power producer with combined generation capacity of 12,410 MW, it said.
Adani Power claims to be the largest private power producer in India with projects spread across the states of Gujarat, Maharashtra, Rajasthan and Karnataka, apart from Chhattisgarh.
In August 2014, Adani Power had bought Lanco Infratech’s 1,200 MW thermal plant in Udupi (Karnataka) at an enterprise value pegged at a little over Rs 6,000 crore ($1 billion then).
Adani is also in the race to pick up 51% stake in another financially-strained power firm, Coastal Energen, which is owned by Indian lenders and has outstanding dues of Rs 6,000 crore. According to bankers, Adani Power has bid for a few power assets under the Samadhan scheme for resolution of stressed power projects.