Adani sets out to buy bankrupt company, so many giants in the race

While there used to be less buyers to buy a power company, now with Adani Group also joining the race, other giants are also ready. Adani Group has bid Rs 12,500 crore to buy this bankrupt company. However, the number of bidders has increased significantly. The final bid number may be higher than the starting figures.

Troubled company KSK Mahanadi Power has seen a surge in the number of bidders to buy it, due to which the committee of creditors of the bankrupt company is hopeful of a complete recovery. If that happens, it will be a major breakthrough that may never happen again.

With the arrival of Gautam Adani, the interest of other bidders has increased.

According to the information, the highest bid of Gautam Adani is 62 percent more than the next competitor. Adani's bid of Rs 12,500 crore has increased the interest of buyers in KSK Mahanadi. In a recent development, six of the 10 early-stage bidders, including NTPC, have proposed to join Adani, intensifying the race to buy the company. Due to this the value of their property has also increased.

Adani's bid will get back 92 percent of the property

With KSK Mahanadi's cash reserves of Rs 10,000 crore and trade receivables of Rs 4,000 crore, Adani's cumulative bid could recover about 92 per cent of the assets owed to creditors.

The company has a lot of debt

KSK Mahanadi Power in Chhattisgarh has a capacity of 1,800 MW and has a huge debt of Rs 29,330 crore. The plant entered the IBC in 2019 with opening bids of Rs 6,500 crore to Rs 7,700 crore over rivals like Jindal Power, Vedanta, NTPC and Coal India.

Adani Group's bid comes after its recent acquisitions of Lanco Amarkantak and Coastal Energy through IBC proceedings. To further increase competition, the COC introduced a challenge system, which increased bidding between competitors.