Renascent Power to Buy 75% PPGCL under Stressed Asset Resoln Process

Further, this transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process.

Renascent Power Ventures, arm of Resurgent Power, signed a Share Purchase Agreement (SPA) with a consortium of lenders led by State Bank of India (SBI) to acquire 75.01 percent stake in Prayagraj Power Generation Company (PPGCL).

PPGCL owns and operates a 1,980 MW supercritical power plant in the state of Uttar Pradesh, India.

Further, this transaction is the result of stressed asset resolution process initiated by the lenders through a competitive bidding process.

The SPA will be subject to customary approvals from regulatory authorities and the transaction is expected to be closed over the next few months.

Resurgent Power is a joint venture between Tata Power International Pte. Ltd (TPIPL) (a wholly owned subsidiary of Tata Power), ICICI Bank and other reputed global investors including Kuwait Investment Authority, State General Reserve Fund, Oman, set up to acquire assets in the Indian Power Sector.

TPIPL owns 26 percent stake in Resurgent Power and the balance 74 percent is held by ICICI Bank and other global investors.

Commenting on the development, Praveer Sinha, CEO & MD, Tata Power and Director of Resurgent Power said, “The JV has been evaluating various assets that meets its investment objective and Prayagraj fits into that. Resurgent looks forward to maximizing its potential using the expertise of all the partners.”