Vedanta Set To Acquire Meenakshi Energy, Gets NCLT's Nod

Vedanta's plans to acquire Meenakshi Energy via the insolvency resolution procedure has been approved by National Company Law Tribunal (NCLT) Hyderabad bench earlier last week, according to reports. Earlier this year on January 18, Vedanta was declared as the as the successful bidder for debt-ridden Meenakshi Energy Limited, as per the BSE filing.

Anil Aggarwal-led Vedanta agreed to pay Rs 1,440 crore for acquiring Meenakshi Energy, added Vedanta's BSE filing.

Vedanta stated in its BSE filing, "Vedanta Limited shall acquire 100% of the paid-up capital and management control of Meenakshi Energy Limited."

It is worth noting that Meenakshi Energy possesses a 1,000 MW coal-based power plant in Nellore, Andhra Pradesh.

Vedanta plans to operate the power plant of the bankrupt Meenkashi Energy as an independent power producer and shall be entering into power purchase agreements with customers.

As per the exchange filing, Vedanta asserted that of the total consideration, the company will pay Rs 312 crores upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors. The consideration will mature in five equal instalments over a period of five years.

Current market price of Vedanta Limited share is Rs 235.75 apiece with intraday fall of 0.36%. Its 52-week high price is Rs 340.75 apiece and 52-week low price is Rs 232.00 apiece, respectively. It has a market capitalisation of Rs 87,651.50 crore. Vedanta Limited shares declined 25% year-to-date, fell 12% in last 1-year, and gave return of 84% in last 3-years.

The diversified conglomerate for the quarter ended June 30, 2023 announced its consolidated total income at Rs 34,279.00 crore, down 11.27% as compared to last quarter total income of Rs 38,635.00 crore. The company in its latest quarter declared its net profit after tax at Rs 3,308.00 Crore.

Vedanta Limited is one of the world's foremost natural resources conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductor and glass. With world-class strategic assets based across India, South Africa, Namibia and Liberia, we are rightly positioned to create long-term value with superior cash flows, according to its official website.