Business aficionados! A high-stakes bidding war has erupted for a coveted company, with 3 Titans Battle flexing their muscles: Mukesh Ambani’s Reliance, Gautam Adani’s empire, and the Indian government itself.
Brace yourself for a power struggle between billionaires, political influence, and strategic maneuvers as we unpack the full story behind this dramatic acquisition battle.
3 Titans Battle: Ambani, Adani, and Govt
With Naveen Jindal’s support, Jindal Power has pulled out of the race to buy Lanco Amarkantak Power. An bid was made by Adani Power for the struggling thermal power company that is going through corporate bankruptcy.
Now that Jindal Power has withdrawn, there are just three bidders remaining. These will take part in the planned auction process, which will be led by the Power Finance Corporation consortium, Adani Power, and Reliance Industries.
The company Amarkantak Power is undergoing insolvency procedures. The Korba-Champa state highway in Chhattisgarh is home to a coal-based thermal power station operated by Lanco Amarkantak Power. During the first stage, two 300–300 MW units are used to generate power. From these, Madhya Pradesh, Chhattisgarh, and Haryana receive their electricity.
People with knowledge of the matter claim that Jindal Power filed an application with the Amravati National Company Law Tribunal (NCLT) to withdraw their plea.
In mid-January, it applied to the tribunal for authorization to participate in the sale of the power company. In response, lenders demanded a formal commitment from Jindal Power to make an all-cash bid. Lenders also requested that they adhere to the requirements stated in the Request for Resolution Plant.
On January 16, Jindal Power responded to a petition the tribunal received on January 12 requesting permission to bid on Lanco Amarkantak with a Rs 4,203 crore cash offer and a Rs 100-crore bank guarantee. Specifically, ET covered these occurrences on January 13 and January 17, respectively. Jindal Power is offering Rs 4,203 crore, which is somewhat higher than Adani Power’s offer of Rs 4,100 crore from a month ago.
Desperate to acquire the company, Adani Power raised its offer from Rs 3,650 crore in November to Rs 4,100 crore. Adani’s unsolicited offer, however, was made almost 11 months after lenders voted 95% in favour of a Rs 3,020-crore resolution plan, led by the PFC consortium.
When Adani submitted an offer, lenders were awaiting approval from NCLT, while the PFC-led consortium’s acquisition had already received CCI approval. Therefore, after the voting procedure was completed, lenders requested authorization from NCLT to review Adani’s proposal.
Adani’s ₹4,100 crore offer is the opening bid in a new auction that lenders will hold this month to sell the thermal power company, as permitted by the tribunal. In addition to the PFC-led group, Reliance Industries—which initially offered a resolution plan—will reportedly also be extended an invitation to partake in the auction.
Two 300 MW units each make up Lanco Amarkantak’s fully operational first phase.
The second phase, now under development, will have two 600 MW units. The corporation possesses Rs 1,800 crore in cash as a result of its first phase of operations.
Also Read: RELIANCE & ADANI RULE THE ROOST: HOW THEY BECAME INDIA’S BIGGEST WEALTH CREATORS 2018-23: STUDY
