Adani was about to buy another bankrupt company, now Jindal and Vedanta have put a stop to it!

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Adani Group: Sources connected with the IBC system said that the credit for generating interest in KSK Mahanadi has been given to Adani Group. Due to Adani Group's participation in the bidding for the company, other bidders have also increased their interest towards it.

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KSK Mahanadi: Adani Group is continuously expanding its business empire by acquiring bankrupt companies. Recently, Gautam Adani had made a bet to acquire another bankrupt company. But giants like Jindal and Vedanta have obstructed his successful attempt. After this, the battle for the acquisition of Chhattisgarh-based KSK Mahanadi Power is becoming interesting. Adani Group had placed a bid of Rs 12,500 crore for the acquisition of the company. After this, the remaining bidders are planning to revise their bids. After this, it is being estimated that the bid figure for the company may increase significantly.

Full recovery of NPA is expected

After the Committee of Creditors (COC) of KSK Mahanadi Power started the bid challenge system, it is expected that the NPA will be fully recovered. However, this is difficult in the proceedings conducted under the Insolvency and Bankruptcy Code (IBC). Sources associated with the IBC system said that the credit for generating interest in KSK Mahanadi has been given to the Adani Group. With the Adani Group participating in the bid for the company, other bidders have also increased their interest towards it.

Adani Group placed an initial bid of Rs 12,500 crore

Adani Group has placed an initial high bid of Rs 12,500 crore for the troubled company KSK Mahanadi Power. This bid is Rs 4,800 crore (62 percent) more than the second highest bidder. As a result, six out of 10 bidders, including NTPC, have now submitted revised proposals close to the bid placed by the Adani Group. This has increased competition among the bidders, which will increase the asset value.

KSK Mahanadi has an installed capacity of 1800 MW

Sources said this reflects the IBC's emphasis on getting maximum value. Adani's competitive bid comes to around Rs 27,000 crore, when KSK Mahanadi's alleged cash reserves of Rs 10,000 crore and trade receivables of Rs 4,000 crore are added. This means that lenders can recover 92 per cent of the outstanding loan. KSK Mahanadi, located in Chhattisgarh, has an installed capacity of 1,800 MW.

Others placed bids between 6500 crores and 7700 crores.

This project with a debt burden of about Rs 29,330 crore was brought into the bankruptcy resolution process in 2019. Adani Power's bid of Rs 12,500 crore was the highest offer among competing entities. Big companies like JSW Energy, Jindal Power, Vedanta, NTPC and Coal India were involved in this process. But their bids were between Rs 6,500 crore and Rs 7,700 crore. After this, the committee of creditors decided to adopt the bid challenge system. Under the new system, the remaining claimants have placed increased bids.