In a dramatic turn of events, a day after the lenders of Prayagraj Power Generation Company gave the letter of intent (LoI) to Tata Power JV Resurgent Power Venture for acquiring 75.01 per cent stake, Sajjan Jindal-led JSW Energy has upped its offer for the same, according to a company source.
JSW Energy, which had made an offer of around Rs 59 billion of upfront payment earlier, has now increased it to around Rs 62 billion, higher than what was offered by Resurgent Power Venture, the source said.
Resurgent Power had offered an upfront payment of Rs 60.86 billion, an equity stake of around 15 per cent, and had also proposed to bear the tax liability, which is over Rs 25 billion, according to the source.
JSW Energy had earlier said that the tax liabilities should be deducted from its cash offer, which then was about Rs 59 billion.
An email sent to JSW Energy remained unanswered, while Tata Power was unavailable for comment.
Yesterday, Tata Power in a statement had said that the lenders of Prayagraj Power had issued an LoI for acquisition of 75.01 per cent stake in the company.
"Since the matter was outside the purview of NCLT, JSW had received the LoI from the lenders a week ago. But since Tata Power increased its offer, the lenders gave them the LoI. However, today we have approached the lenders and have submitted our revised offer," the company source told PTI.
Prayagraj Power has one of its stressed power sector asset with 1,980 MW capacity, which is a coal-fired unit in Uttar Pradesh.
The company, earlier promoted by Jaiprakash Associates, owes over Rs 110 billion to lenders.