JSW Energy completes acquisition of Ind-Barath Energy Utkal

JSW Energy has completed the acquisition of Ind-Barath Energy Utkal (Ind-Barath) pursuant to the Resolution Plan (RP) submitted under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code, 2016 and approved by the Committee of Creditors and National Company Law Tribunal. The RP has now been implemented, consequently Ind-Barath has become a subsidiary of the company.

Ind-Barath owns a 700 MW (350MW x 2 units) thermal power plant located at Jharsuguda district of Odisha, of which Unit-I had been commissioned in 2016 but is non-operational since then due to financial stress at Ind-Barath while Unit-II is yet to be commissioned.

 

The Project is expected to be completely operational within the next 24 months.

The acquisition is valued at an enterprise value of Rs 1,048 crore. The company will infuse additional capital towards expenditure required for completion of the balance work.

Further the secured financial creditors of the project will be able to participate in the equity upside with 5% equity shares of Ind-Barath as per the terms of the RP. The company shall hold 95% of equity shares of Ind-Barath.

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