Adani Group’s Rs 12,500 crore bid for KSK Mahanadi Power has triggered a flurry of revised bids, with competing bidders significantly increasing their numbers in response. Sources suggest the final tally of bids could exceed the initial figures.

Lenders to distressed asset KSK Mahanadi Power are hoping for a rare full recovery after the implementation of the Committee of Creditors (CoC) challenge mechanism, an achievement rarely seen in the Insolvency Code processes. bankruptcy (IBC).

Adani’s high bid, positioned 62% above the next competitor at Rs 12,500 crore, has rekindled bidder interest in KSK Mahanadi, according to IBC insiders. In the latest developments, six of the original ten bidders, including NTPC, revised their bids to closely align with those of Adani, thereby intensifying competition and increasing the value of the asset, according to industry observers.

With KSK Mahanadi’s cash reserves at Rs 10,000 crore and trade receivables at Rs 4,000 crore, Adani’s cumulative bid could see lenders recoup around 92% of the asset’s debt. This potential recovery aligns with IBC’s goal of maximizing value, making this a historic moment for the Code.

Located in Chhattisgarh, KSK Mahanadi Power has a capacity of 1,800 MW and had accumulated a debt of Rs 29,330 crore. The plant entered the IBC in 2019, with bids initially ranging between Rs 6,500 crore and Rs 7,700 crore from rivals like JSW Energy, Jindal Power, Vedanta, NTPC and Coal India.

Adani’s offer follows its recent acquisitions of Lanco Amarkantak and Coastal Energen through the IBC process. In a bid to further stimulate competition, the CoC launched a challenge mechanism, leading to intensified bidding between competitors. As Adani’s bid highlights the IBC’s dual objectives of value maximization and restructuring, industry voices debate the implications of this increased corporate interest in insolvency of India.