In an exchange filing, the mining company said, "Post submission of bid for Meenakshi Energy under Corporate Insolvency Resolution Process (CIRP) under Insolvency and Bankruptcy Code (IBC), Vedanta has been declared successful bidder on 18 January 2023 subsequent to which board of directors of Vedanta has approved the acquisition of Meenakshi Energy.

Meenakshi Energy is a 1,000 megawatt (MW) coal power plant located at Nellore district of Andhra Pradesh. The company was admitted under the insolvency proceedings commenced on 7 November 2019. It recorded a turnover of Rs 201 crore in FY22.

Vedanta stated that it will acquire 100% of the paid-up capital and management control of Meenakshi Energy.

The consideration payable is Rs 1,440 crore. Out of the total consideration Rs 312 crore shall be paid upfront and balance Rs 1,128 crore in the form of secured unlisted non-convertible debentures issued by Meenakshi Energy to the financial creditors. The consideration will mature in five equal instalments over a period of five years, the mining company stated in the press release.

The acquisition is expected to be completed in FY 2024. However, the approval of National Company Law Tribunal (NCLT) is pending.

Vedanta currently envisage to operate 1,000 MW of Meenakshi Energy as independent power producers (IPP) to carter to the needs of the market by entering into short or medium term Power Purchase Agreement (PPA) and by supplying power to merchants. The acquisition shall enhance the Group's portfolio in power, the company said in the regulatory filing.

Vedanta, a subsidiary of Vedanta Resources, is one of the world's leading oil & gas and metals company with significant operations in oil & gas, zinc, lead, silver, copper, iron ore, steel, and aluminium & power across India, South Africa and Namibia.

On consolidated basis, Vedanta's net profit declined 53.71% to Rs 2,690 crore despite of 20.6% increase in revenue from operations to Rs 36,237 crore in Q2 FY23 over Q2 FY22.

Shares of Vedanta rose 0.99% to Rs 327.30 on the BSE.