With ₹27,000 crore, Adani tops KSK Mahanadi bidder list

Mumbai: Adani Power has offered the highest bid of ₹27,000 crore for KSK Mahanadi Power's 1,800-megawatt plant that's undergoing insolvency proceedings, people with knowledge of the matter told ET. The Adani offer already ensures a 92% recovery for the lenders.

Banks had received a total of 10 financial bids for the thermal power company by Thursday evening. Other bidders include Capri Global Holdings, Coal India, NTPC, Vedanta, JSW Energy, Naveen Jindal-owned Jindal Steel & Power, iLab India Special Fund, Rashmi Metaliks and Sherisha Technologies, said the people cited above.

Adani Power's offer is a combination of ₹12,500 crore in upfront cash, ₹9,000 crore of accumulated cash in the company since three of its units are operational, and an estimated receivables of ₹5,500 crore, one of the persons cited above said.


Capri Global Holdings made the second highest offer. It sought to pay ₹25,000 crore inclusive of cash in the company, receivables, and upfront cash payment to lenders. NTPC, the third largest bidder, is offering ₹22,200 crore, which includes ₹7,700 crore upfront payment and ₹14,500 crore as the cash in the company and receivables.

The resolution professional at KSK Mahanadi Power, Adani Power and NTPC did not respond to ET's requests for comment.

Capri Global, in a mailed response, reaffirmed its commitment. "Our AIF, along with our investors, are committed and would like to acquire this company," it said. The AIF that Capri refers to here is the Capri Xponentia Stressed Asset Fund.

'May Receive Almost Entire Dues'
The PWC-supported resolution professional, Sumit Binani, has admitted ₹29,330 crore in claims from financial creditors for the thermal power company, which operates three units of 600 MW each.

For the Adani Group, the actual outgo as per the plan is ₹12,500 crore. This works out to a ₹7-crore bid per MW-the highest offered for any distressed thermal power asset so far. During Thursday's meeting with lenders, Binani disclosed the 10 plans, following which banks decided to seek improved offers from all bidders and subsequently hold an auction among them, people cited above said.

"There is a likelihood that lenders could receive nearly their entire dues after an auction among bidders," one lender said.

Adani Group had shown interest in acquiring KSK Mahanadi even before it was admitted for insolvency in October 2019. Late 2018, it had offered ₹10,300 crore, but backed out in February 2019 after the Uttar Pradesh government revised tariffs downward, a banker cited above said. The debt resolution of KSK Mahanadi, admitted into the National Company Law Tribunal (NCLT) five years ago, is delayed due to a series of litigations. Losing patience, a dozen lenders with about ₹16,165 crore of verified claims among them, separately sold their debts to various asset reconstruction companies (ARC).

As many as six ARCs jointly control 54.4% of verified claims after acquiring loans from multiple banks. Among the lenders, State Bank of India, Life Insurance Corporation, Axis Bank, Punjab National Bank, Bank of Baroda, Indian Overseas Bank, Union Bank of India, Jammu and Kashmir Bank, Indian Bank, Federal Bank, Central Bank of India and L&T Finance sold their loans. Among the ARCs, Aditya Birla ARC has the largest share, with 33.38% of the debt, followed by ASREC (India) at 12%.

NCLT had stayed the sale process in June 2022 after a plea from a lender to consolidate the resolution of KSK Mahanadi Power and two of its ancillary companies. These are KSK Water Infrastructure, which supplies water to the plant, and Raigarh Champa Rail, which carries the raw material to the plant.

These companies were separately admitted for corporate insolvency, and lenders wanted a consolidated resolution to maximise recovery, but NCLT rejected the consolidation proposal. Subsequently, lenders appealed against the tribunal's order at the National Company Law Appellate Tribunal, which, too, stayed the process. Binani invited bids after the stay was lifted.