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NTPC and MAHAGENCO will jointly acquire Sinnar Thermal Power Ltd for Rs 3,800 crore
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The acquisition follows the insolvency resolution process under the Insolvency and Bankruptcy Code
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Each partner in the consortium will hold a 50% stake in the acquired power plant
NTPC Ltd. on Friday announced a deal to buy Sinnar Thermal Power Ltd. in Maharashtra for Rs 3,800 crore after an insolvency process.
The Maharashtra State Power Generation Co. (MAHAGENCO) and NTPC signed a shareholder agreement in Delhi for the acquisition of the power plant which is undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code 2016, according to a stock exchange filing.
The resolution plan submitted by the consortium of MAHAGENCO and NTPC was approved by the National Company Law Tribunal, Delhi, in November last year.
The full 100% shareholding will be acquired by the consortium of MAHAGENCO and NTPC with each partner having 50% stake.
The Sinnar Thermal plant acquisition will be completed by Feb. 26, the filing said. The successful acquisition and implementation of the resolution plan for acquisition of STPL will advance NTPC's position as India's leading power producer, the PSU power producer said.
STPL owns a coal based thermal power plant of 11,350 megawatt capacity at Sinnar in Nashik district.
With acquisition of STPL, the total installed capacity of NTPC Group will become 86,987 MW and commercial capacity will become 85,907 MW.
Shares of NTPC ended 2.3% lower at Rs 336 on the NSE, ahead of the announcement, compared to a 0.7% decline in the benchmark Nifty. The stock has risen 5% on a 12-month basis.
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