NCLT approves Vedanta’s acquisition of Meenakshi Energy at Rs 1,440 crore

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Vedanta, led by Anil Aggarwal, has received the National Company Law Tribunal’s (NCLT) green light for its strategic acquisition plans. The focus of this acquisition is Meenakshi Energy, an entity entrenched in the energy sector. The deal has been finalized at Rs 1,440 crore, demonstrating Vedanta’s commitment to diversification and expansion, according to a report by the Hindu Businessline.


The conglomerate’s acquisition plan encompasses the entirety of Meenakshi Energy’s paid-up capital and complete managerial control. This decision was officially communicated by Vedanta through a press release on Thursday.


Vedanta’s plan to procure Meenakshi Energy’s assets via the insolvency resolution process was endorsed by the NCLT Hyderabad Bench.


The success of this initiative reportedly stems from Vedanta’s competitive bid, which positioned it as the prime bidder for the beleaguered Meenakshi Energy.


Meenakshi Energy holds a substantial coal-based power plant generating 1,000 MW of electricity. Located in the region of Nellore, Andhra Pradesh, this asset serves as a cornerstone for Vedanta’s strategic foray into the energy sector. The conglomerate’s vision involves steering the power plant’s operations as an independent power producer. This transformation will be facilitated through the establishment of power purchase agreements with potential customers, thus strengthening the energy ecosystem.


Vedanta’s acquisition involves a two-tier payment structure. Initially, the conglomerate will make a payment of Rs 312 crore. The remaining balance of Rs1,128 crore will be discharged through secured unlisted non-convertible debentures issued by Meenakshi Energy to its financial creditors.


This consideration will mature across five equal instalments spread over a span of five years. This strategic approach underscores Vedanta’s prudent financial strategy, positioning it favourably for sustainable growth and fostering a resilient financial framework.


Vedanta’s strategic influence extends across diverse sectors, encompassing aluminium, zinc-lead-silver, oil and gas, iron ore, steel, copper, power, ferro alloys, nickel, semiconductor, and glass. The conglomerate’s assets are strategically located in India, South Africa, Namibia, and Liberia.


From a financial standpoint, Vedanta’s net profit after tax for the June quarter stood at Rs 3,308 crore.