Adani Power Limited (NSEI:ADANIPOWER)?s INR 41,000 million unsolicited offer for Lanco Amarkantak Power Limited will be the anchor bid for the proposed auction to sell the distressed thermal company, said people with knowledge of the matter. Reliance Industries Limited (NSEI:RELIANCE) and a consortium led by Power Finance Corporation Limited (NSEI:PFC) (PFC) are the other two bidders participating in the auction process, the people cited above said. Last January, 95% of lenders approved a INR 30,200 million plan given by a PFC-led consortium, and the resolution professional applied for approval with the National Company Law Tribunal (NCLT).

Thereafter, Adani Power gave an unsolicited improved offer of INR 36,500 million, as reported by ET on November 2, and later, it improved the offer to INR 41,000 million, as reported by ET on December 13. Adani?s revised, improved offer is 36% higher than the lender-approved plan given by the PFC-led consortium. Since Adani gave an offer after they approved PFC?s plan, the RP invited lenders to vote on whether to consider Adani?s unsolicited offer since he has already filed an applicant with NCLT.

In the last week of December, lenders unanimously voted to consider Adani Power?s offer. KPMG-backed RP Saurabh Kumar Tikmani has applied to NCLT seeking direction on holding an auction with Adani?s offer as an anchor bid. NCLT is scheduled to hear the matter on January 16.

At an auction in December 2022, Only the PFC-led consortium participated offering INR 30,200 million, Adani and Reliance had given initial offers of INR 29,500 million and INR 21,030 million respectively, but did not participate in auction, citing violations in the sale process. Since all lenders, including PFC and REC, have voted on a proposal to restart the auction process, it gives a big boost to Adani. This is because PFC and REC jointly hold 41% of the debt in the power company, and its consortium emerged as a successful resolution applicant.

The Insolvency and Bankruptcy Code (IBC) does not prevent debtholders from bidding for a company.