NTPC Set To Buy Avantha's Jhabua Power, Share Price Up 1.79% Intraday

Power generating company NTPC acquired the Jhabua thermal project (600Mw) of Avantha Group, through the Insolvency and Bankruptcy Code (IBC) process. Jhabua was a stressed company, and NTPC is acquiring this company for the first time through the National Company Law Tribunal (NCLT) route. Its expected deal size is Rs. 1,830 crore.

In a recent press release, NTPC said, "In continuation to our disclosure dated 28th June 2021 and pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we wish to inform that the Resolution Plan dated 14th June, 2021 (Plan) submitted by NTPC Limited and approved by NCLT, Kolkata Bench vide its order dated 6th July 2022 for Jhabua Power Limited has been implemented on 05.09.2022. The re-constituted board of Jhabua Power Limited, as provided under the Plan, has assumed management of the Jhabua Power Limited. Further, post-acquisition of Jhabua Power Limited, having installed and commercial capacity of 600 MW, NTPC Group's Installed and Commercial Capacity has crossed 70 GW and now stands at 70064 MW."

Jhabua was submitted to the National Company Law Tribunal (NCLT), in May 2019. The company defalcated Rs. 35 crore to an operational creditor.

After the news confirmation, the share price of NTPC surged to Rs. 167.45, gaining 1.79%, at the time of writing. In the last 1 year, NTPC's share price has given 43.80% sharp returns to its shareholders.