Tata-backed Resurgent Power beats JSW Energy to win Prayagraj Power assets

Tata Elxsi Q4 | Profit rises to Rs 82.08 cr versus Rs 71.29 cr; revenue increases to Rs 438.88 cr versus Rs 405.1 cr YoY. (Image: Reuters)

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Resurgent Power Ventures, a company backed by the Tata Group and ICICI Ventures, is likely to win the bid for Prayagraj Power Generation Company with an offer of Rs 6,000 crore, beating JSW Energy in the race.

The announcement is expected later today, or tomorrow.

A senior banking source confirmed the offer and said the bid includes upfront cash of Rs 6,000 crore and about 15 percent equity for the lenders, while JSW Energy, which has also offered the same bid amount, has less equity and more conditions to the offer.

The bank official said the JSW offer excludes other tax liabilities limiting the in-hand offer for the lenders.

“Following JSW Energy’s offer, the lenders appointed consulting firm PricewaterhouseCoopers to assess the tax liabilities of Prayagraj Power. PwC indicated the tax liability could be as high as Rs 2,200 crore, making JSW Energy’s offer effectively Rs 3,740 crore,” according to an ET report.

The Tata Group and JSW Energy are also in the race to acquire Bhushan Power & Steel, where JSW Steel improved its offer by 60 percent after lenders declared the Tatas as the highest bidder.

Resurgent Power is a fund with focus on power projects.

Also Read: As RBI's Aug 27 deadline looms, over 60 large stressed loans worth over Rs 3 lakh cr stare at insolvency process

Power is one of the highly stressed sectors with close to Rs 1 lakh crore loans having turned sour or been recast.

Prayagraj Power has one of the stressed power sector asset with 1,980MW, coal-fired electricity-generating unit in Allahabad, Uttar Pradesh.

Prayagraj, earlier promoted by Jaiprakash Associates, owes over Rs 11,000 crore to lenders. Jaiprakash Associates now holds just 11 percent stake in Prayagraj.

The lenders took controlling stake in Prayagraj after invoking the RBI’s strategic debt restructuring (SDR) norms that that allow conversion of loans into equity.