A clutch of lenders led by Punjab National Bank (PNB) is looking to sell its 51 per cent stake in Jindal India Thermal Power Ltd (JITPL), along with management control. It has invited expressions of interest (EoI) from potential investors.

“EoIs are invited from investors and consortia of investors having adequate financial and technical capability as per qualifying criteria for taking over a 51 per cent stake in JITPL,” said a newspaper ad put out by lead lender PNB.

A security trustee to the lenders holds 51 per cent of JITPL shares on behalf of the lenders.

The lenders have also mandated SBI Capital Markets as transaction adviser for the proposed stake sale. Interested bidders have to submit their EoIs by 5 pm on September 18, said the ad.

The other lenders in the 17-lender consortium include State Bank of India, United Bank of India, Bank of Baroda, Indian Overseas Bank, UCO Bank, Vijaya Bank, Indian Bank, Punjab & Sind Bank, Canara Bank, Union Bank of India, ICICI Bank and Axis Bank. LIC is also a lender to JITPL.

Odisha project

JITPL, a BC Jindal Group company, is a special purpose vehicle set up in 2001 to develop a coal based thermal plant in Odisha.

The company owes more than ₹5,900 crore to lenders.

It has set up a 1,200-MW (2 X 800 MW) thermal power project of sub-critical technology near Derang village of Odisha’s Angul district.

The cost of project, funded through equity and debt, stood at ₹7,061 crore.

The company, which had posted a net loss of ₹262.60 crore in FY-16, has executed long-term power purchase agreements of 744 MW.

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