Megha Engineering: Megha Engg to buy Lanco Anpara stake for Rs 855 crore

Mumbai: Led Banks will soon sell 71% stake in thermal power company Lanco Anpara Power to Hyderabad-based Megha Engineering and Infrastructures for ₹855 crore, two people with knowledge of the development have said. Although Lanco Anpara Power, a special purpose vehicle (SPV) of bankrupt Lanco Infratech, is a performing asset, lenders decided to monetize the 71% stake that defaulter Lanco Infratech had pledged as collateral against loans of 12 ₹000 crore.

Lanco Infratech is in liquidation. To recover some of their rights, the lenders invited bids for 71% of Lanco Anpara at a reserve price of ₹819 crore.

Agencies

The out-of-court sale follows a tender process launched by the lenders, in which Deloitte Touche Tohmatsu India was appointed process advisor.
Megha Engineering outbid Hindustan Powerprojects and iLabs Group to emerge victorious, the people quoted above said.

The company did not respond to requests for comment until press time on Friday.

Proceeds from the sale of 71% of Lanco Anpara’s equity will go to Lanco Infratech’s lenders. Another 28.8% stake of Lanco Anpara, held by Lanco Thermal Power, is pledged to the lenders of Lanco Anpara which has outstanding loans of ₹2372 crore. They include term loans of ₹1,990.4 crore and working capital loans of ₹381.4 crore as of March 31, 2021.

The state-owned infrastructure finance company had the highest exposure of ₹809 crore among Lanco Anpara’s lenders, followed by IIFCL with an exposure of ₹389 crore.

Other lenders include Central

, Bank of India, , , and . Private lenders and , too, had provided working capital loans to the bankrupt company.

Lanco Anpara Power is a coal-fired thermal power project with two units of 600 MW each, located near Anpara in Uttar Pradesh. The first unit was commissioned in December 2011, followed by the second unit in January 2012.

The company has a long-term power purchase agreement with UP Discom ending in 2036 for Unit 1 and 2037 for Unit 2, and both are extended for five years.

Megha Engineering is an engineering, procurement and construction (EPC) company that has undertaken projects related to irrigation, power, transport and drinking water, according to the website of the company.

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