Jindal Power is set to acquire Gujarat-based thermal power company Bhadreshwar Vidyut for approximately Rs 5 billion through the corporate insolvency resolution process. The acquisition will strengthen Jindal Power’s presence in Gujarat’s energy sector.

The company recently secured approval from the Committee of Creditors (CoC) and has received the Letter of Intent. The final resolution plan is valued at around Rs 4.70 billion, with Jindal Power planning to finance the acquisition through internal accruals. Additionally, an estimated Rs 250-500 million will be allocated for capital expenditure to enhance the acquired entity’s operations.

Bhadreshwar Vidyut, formerly known as OPGS Power Gujarat, was established as a special-purpose vehicle by the OPG Group. The company operates two coal-based power plants in Kutch, each with a capacity of 150 MW. The project was developed at a total cost of Rs 16.40 billion, with a debt-equity ratio of 75:25.

The company entered insolvency proceedings in October 2022 after lenders rejected a debt restructuring plan. The acquisition by Jindal Power is expected to provide financial stability and operational improvements to the thermal power plants while expanding the company’s footprint in the region.

News source: DeshGujarat