Adani Group’s Rs 12,500 crore bid for KSK Mahanadi Power has spurred a wave of revised offers, with competing bidders significantly raising their numbers in response. Sources suggest that the final bid tally could exceed the initial figures.
The lenders to KSK Mahanadi Power, a distressed asset, are hopeful of a rare full recovery following the implementation of the Committee of Creditors (CoC) Challenge Mechanism, a seldom-seen achievement in Insolvency and Bankruptcy Code (IBC) processes.
Adani’s high bid, positioned 62% above the next competitor at Rs 12,500 crore, reactivated bidder interest in KSK Mahanadi, say IBC insiders. In the latest developments, six out of the ten initial bidders, including NTPC, revised their offers to align closely with Adani’s, intensifying the competition and enhancing the asset’s value, per industry observers.
With KSK Mahanadi’s cash reserves at Rs 10,000 crore and trade receivables of Rs 4,000 crore, Adani’s cumulative bid could see lenders recover around 92% of the asset’s debt. This potential recovery aligns with IBC’s objective of maximizing value, making it a landmark moment for the Code.
Located in Chhattisgarh, KSK Mahanadi Power has a capacity of 1,800 MW and had accrued a debt of Rs 29,330 crore. The plant entered the IBC in 2019, with bids ranging initially between Rs 6,500 crore and Rs 7,700 crore from competitors like JSW Energy, Jindal Power, Vedanta, NTPC, and Coal India.
Adani’s bid followed its recent acquisitions of Lanco Amarkantak and Coastal Energen through IBC proceedings. In a move to further stimulate competition, the CoC initiated a Challenge Mechanism, leading to heightened bidding among rivals. As Adani’s offer highlights the IBC’s dual goals of value maximization and restructuring, industry voices are debating the implications of this intensified corporate interest within India’s insolvency framework.
