New Delhi: State-owned Punjab National Bank (PNB) extended the deadline for submitting bids to sell its 73.59% equity shares and 66% preference shares of Jindal India Thermal Power Ltd (JITPL) to 4 January.
The bids can be submitted until 5:00 pm of 4 January, PNB said in a newspaper advertisement on Monday.
On 19 November, a consortium of lenders led by PNB had invited bids to acquire the said shares along with rights over the debt owed by the company to these lenders.
PNB, as the lead creditor, had appointed SBI Capital Markets Ltd (SBI Caps) as the transaction advisor.
“The intent of this BPD (bid process document) is to seek expression of interest from such strategic or financial investor, who intends to take over the 73.59% equity shares and 66% preference shares in the company, held by the lenders/security trustee on behalf of the lenders along with rights over the debt owed by the company,” the company had said in the document.
Lenders had invited expression of interests after the company submitted a one-time debt settlement proposal worth ₹2,430 crore to them. To determine the value of the settlement proposal offer, lenders placed this as the anchor bid or the base offer and opened the floor for other investors to bid.
“Lenders are desirous of establishing the appropriateness of value submitted by JITPL in the proposal though a Swiss Challenge process by inviting bids from interested parties by offering the sale of 73.59% of equity shares and 66% preferential shares of JITPL and settlement of lenders’ outstanding dues to Jindal India Thermal Power Ltd,” according to the 19 November document.
A consortium of interested investors can also bid for the stressed company, the document had said.
In August 2017, lenders initiated the debt resolution process of JITPL, seeking bids from interested investors to sell their 51% stake in the company.
The B.C. Jindal Group company, which operates a 1,200 megawatt (MW) thermal power plant in Angul district of Odisha, owes more than ₹5,900 crore to a consortium of 17 lenders.