Vedanta Completes Acquisition of Meenakshi Energy, Now a Wholly-Owned Subsidiary

In a significant development, Anil Agarwal-led Vedanta announced on Wednesday that Meenakshi Energy Ltd has officially become its wholly-owned subsidiary. This acquisition marks a crucial milestone for Vedanta, expanding its portfolio and strengthening its position in the energy sector.

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NCLT Approval and Share Allotment

The National Company Law Tribunal (NCLT) had previously granted its approval for Vedanta's acquisition of Meenakshi Energy for a consideration of Rs 1,440 crore. Consequently, Meenakshi allotted 10,00,000 fully paid-up equity shares of Rs 10 each, amounting to an equity capital of Rs 1 crore, to Vedanta. This allotment resulted in Meenakshi becoming a wholly-owned subsidiary of Vedanta, effective from December 27, 2023.

Acquisition through Insolvency Process

Vedanta had earlier announced its intention to acquire the bankrupt thermal power company Meenakshi Energy through an insolvency process. The acquisition was pursued in accordance with the provisions of the Insolvency and Bankruptcy Code, 2016.

Meenakshi Energy's Profile

Meenakshi Energy Ltd operates a 1,000-MW coal-based power plant located in Nellore, Andhra Pradesh. The company's insolvency process, initiated in November 2019, attracted resolution plans from various entities, including Vedanta and Jindal Power, promoted by Naveen Jindal.

Vedanta's Plans for Meenakshi Energy

Vedanta envisions operating 1,000 MW of Meenakshi Energy Ltd as an independent power producer. The company aims to cater to market needs by entering into short or medium-term power purchase agreements and supplying power to merchants.

Vedanta's acquisition of Meenakshi Energy marks a significant step forward in the company's growth strategy. This acquisition enhances Vedanta's presence in the power sector and aligns with its commitment to providing reliable and efficient energy solutions.