New Delhi : Pursuant to the Letter of Intent (LOI) issued by the lenders of NRSS XXXVI Transmission Limited (NRSS XXXVI), Resurgent Power Ventures Pte Ltd (Resurgent) has completed the acquisition of NRSS XXXVI and settled the debt of the lender of NRSS XXXVI. The transaction is part of stressed asset resolution process initiated by PTC India Financial Services Ltd (PFS), lender of NRSS XXXVI through a competitive bidding process. NRSS XXXVI was incorporated as a special purpose vehicle to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with LILO of Sikar-Neemrana 400kV D/C line at Babai on Build-Own-Operate-Maintain (BOOM) basis.
NRSS XXXVI has three elements with a total length of 153 Kms spread across the states of Uttarakhand, Rajasthan and Haryana.
The transaction entails payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of ₹ 127 crore and additional payouts linked to certain events outlined in the share purchase and debt settlement agreement. In addition, Resurgent Power will invest equity and raise debt in NRSS XXXVI for completion of Element 2 and 3. When completed, the total enterprise value will be approx. Rs 470 crores.
Resurgent Power is co-sponsored by Tata Power and ICICI Bank and has other global reputed institutional investors. It was set up to acquire stressed assets in the Indian Power Sector. Tata Power International Pte. Ltd (TPIPL) (a wholly owned subsidiary of Tata Power), owns 26% stake in Resurgent Power and the balance 74% is held by ICICI Bank and other global investors. Resurgent Power owns 75.01% stake in Prayagraj Power Generation Company Limited, which owns and operates a 1.980 MW supercritical power plant in Uttar Pradesh.
“The completion of this acquisition is in line with our aspiration to expand our transmission business while providing a successful resolution of the stressed assets for the lenders. The completion of acquisition of 100% stake in NRSS XXXVI Transmission Limited is another milestone for Resurgent Power. This asset fits with our overall strategy to maximize shareholder value through growth & sound investments. After successful turnaround of the 1980 MW Prayagraj Power in last 3 years, this asset will add further value to the Resurgent portfolio” Praveer Sinha, CEO & MD, Tata Power said.