Kotak Alternate Assets is reportedly leading the race to acquire Jaiprakash Power Ventures’ CCPS and debt.
Kotak Alts’s cumulative offer is of around ₹7,400 crore.
Kotak Alternate Assets (Kotak Alts) is at the forefront in the race to acquire Jaiprakash Power Ventures’s compulsorily convertible preference shares (CCPS) and its debt with a cumulative offer of about ₹7,400 crore. The bid includes ₹3,805 crore for the CCPS and ₹3,600 crore for its debt, the Economic Times reported.
Kotak Alts’ offer for CCPS could result in the company gaining a 25% stake in JP Power if it converts the instruments. This would further trigger an open offer for a further 26% stake. If the open offer is fully subscribed, Kotak Alts would end up holding the majority stake and commanding ownership double of the holding company Jaiprakash Associates in JP Power. JAL has 24% stake in Jaiprakash Power.
Apart from Kotak Alts, others in the race to acquire JP Power’s CCPS include Vedanta, Adani Power, and Oaktree, ET earlier reported.
The 1994-founded power arm of JP Associates has a total power generation capacity of 2,220 MW via its three plants, including Bina thermal power plant, Nigrie thermal power plant, and Vishnuprayag hydropower plant.
The development could potentially make things a bit difficult for billionaire Anil Aggarwal-led Vedanta’s bid to acquire the insolvent JAL. Jaiprakash Power is the most valuable company in the JAL portfolio, posting an operating profit of ₹2,200 crore in the financial year 2023-24. The mining major had emerged as the winning bidder for JP Associates last week, beating billionaire Gautam Adani-led Adani Enterprises.
Up until last week, the stake sale race for JAL had five participants, including Dalmia Bharat, Jindal Power, PNC Infratech, Adani Enterprises, and Vedanta. Vedanta emerged as the highest bidder for the cement-to-construction conglomerate’s holding company with ₹17,000 crore offer. The Gautam Adani-led company had participated in the bidding process whereas the other three, including Jindal Power and PNC Infratech had opted out of the race.
