JSPL also noted that the acquisition was a ‘slump sale’.
SEATTLE (Scrap Monster): Jindal Steel and Power Limited (JSPL) confirmed purchase of Monnet Power’s Angul plant at auction. In a written clarification to exchanges, it said that the acquisition has been conducted under IBBI Regulations on liquidation process and that no share purchase was involved in the transaction.
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JSPL also noted that the acquisition was a ‘slump sale’. The statement by the company indicated that the purchase doesn’t qualify itself as a material event, which requires separate disclosure in accordance with SEBI Listing Regulations.
The plant, under construction, near Malibrahmani in the Angul district of Odisha State, has been acquired for INR 410 crores under the insolvency resolution process. The other frontrunner in the acquisition process was Adani Power. The plant has an estimated output capacity of 1,050 megawatts and will be used by JSPL to supply power to its steel plants in Angul.
Kapil Mantri, Head of Strategy at JSPL said that it plans to make the power plant operational within one year, by pumping in additional investments. It will use 25% less coal, thus leading to significant reduction in carbon emissions, he added.
The sale of the Monnet power plant was first announced by the Mumbai bench of the National Company Law Tribunal (NCLT) in October 2019.
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