New Delhi: Adani Power Tuesday said it will acquire GMR Chhattisgarh Energy Ltd (GCEL) as the consortium of lenders has approved its resolution plan.
The consortium of lenders, led by Axis Bank, to GMR Chhattisgarh Energy Ltd (GCEL), has issued a Letter of Intent dated June 24, 2019, approving Adani Power's (APL) resolution plan to acquire controlling equity stake and restructure debt in GCEL, Adani Power said in a regulatory filing.
"Post the transaction, Adani Power Limited shall hold 100% equity stake in GCEL. Of this, 52.38% stake is to be acquired from the lenders, and the balance 47.62% is to be acquired from the GMR Group," it said.
GCEL owns an operational 1.370 megawatt (MW) supercritical thermal power plant in Raikheda, Raipur district, Chhattisgarh. The plant consists of 2 units of 685 MW each, commissioned in June 2015 and April 2016 respectively. "Successful acquisition of GCEL and Korba West Power Company (KWPCL) will consolidate APL's position as India's leading private sector thermal power producer with combined thermal power capacity of 12,410 MW. Further, this reaffirms APL's credentials in development and operation of greenfield projects, and also successfully turning around brown-field acquisitions," it added.