Renascent Power, a wholly-owned subsidiary of Resurgent Power Ventures Pte Limited, Wednesday said it would acquire 75.01 per cent stake in Prayagraj Power Generation Company Limited (PPGCL).
It has signed a Share Purchase Agreement (SPA) with a consortium of lenders led by State Bank of India (SBI) to acquire 75.01 per cent stake in PPGCL, which owns and operates a 1,980 MW supercritical power plant in Uttar Pradesh.
"This transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process," the company said in a statement.
The SPA will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months, it added.
Resurgent Power is a joint venture between Tata Power International Pte. Ltd (TPIPL) (a wholly-owned subsidiary of Tata Power), ICICI Bank and reputed global investors including Kuwait Investment Authority and State General Reserve Fund, Oman, set up to acquire assets in the Indian power sector.
TPIPL owns 26 per cent stake in Resurgent Power and the balance 74 per cent is held by ICICI Bank and other global investors.