JSW Energy completes acquisition of Ind-Barath Energy for Rs 1,047 Crore

On Wednesday, JSW Energy announced that it had successfully concluded the purchase of 700 MW Ind-Barath Energy (Utkal) for a total cost of Rs 1,047.60 crore via bankruptcy proceedings.

A BSE filing suggested-

“Pursuant to the NCLT (National Company Law Tribunal) approval order, the resolution plan has now been implemented and the acquisition of Ind-Barath Energy (Utkal) Ltd is complete. The resolution amount of Rs 1,047.60 crore has been paid.”

Presently, the company has 95% of equity shares in Ind-Barath Energy (Utkal) Ltd and secure financial creditors hold the remaining 5%, based on terms of the resolution plan. As a result of this transaction, JSW Energy has acquired Ind-Barath Energy (Utkal) Ltd and the latter is now its subsidiary.

On July 26, 2022, the company declared that the NCLT Hyderabad had approved its resolution plan dated October 3rd 2019 submitted under Ind-Barath Energy’s corporate insolvency resolution process. This permitted the building of a 700 MW (2x350MW) thermal power plant in Jharsuguda district located in Odisha via an official order on July 25th 2022 – known as the NCLT Approval Order.

The 700MW thermal power plant was previously owned by Ind-Barath Energy (Utkal) Ltd, and its acquisition is expected to help JSW Energy meet its long-term objectives of providing energy security through a well-diversified portfolio of assets.

This acquisition is also helping the company strengthen its position in the renewable energy space and build a sustainable, profitable business.

This strategic move by JSW Energy marks an important milestone in its journey to become a leading player in India’s power sector. The acquisition of Ind-Barath Energy (Utkal) will add significant value to JSW Energy’s portfolio as it will become one of the largest thermal power generation companies in India.

JSW Energy is committed to creating long-term value for all stakeholders, and this acquisition marks an important step in that direction. The transaction is expected to be beneficial for JSW Energy and its various stakeholders over the long term.

We will see how this acquisition will benefit JSW Energy over the long term. Stay tuned!

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