Resurgent Power Ventures Pte Limited (Resurgent) has completed the acquisition of NRSS XXXVI Transmission Limited and settled the debt of the lender of NRSS XXXVI.
The transaction is part of stressed asset resolution process initiated by PTC India Financial Services Limited, lender of NRSS XXXVI through a competitive bidding process. NRSS XXXVI was incorporated as a special purpose vehicle to establish and operate transmission system for System Strengthening Scheme in Northern Region (NRSS-XXXVI) along with line in line out (LILO) of Sikar-Neemrana 400kV D/C line at Babai on build-own-operate-maintain (BOOM) basis. NRSS XXXVI has three elements with a total length of 153 kms spread across the states of Uttarakhand, Rajasthan and Haryana. The element1 comprising of 1.5 km of transmission line and 2 bays of 400 KV has been completed while work for balance 151 km of lines and 4 bays of 400 KV is underway. The transaction entails payment for one-time settlement of outstanding debt and purchase of equity shares for a total consideration of Rs 1.27 billion and additional payouts linked to certain events outlined in the share purchase and debt settlement agreement. In addition, Resurgent Power will invest equity and raise debt in NRSS XXXVI for completion of element 2 and 3. When completed, the total enterprise value will be around Rs 4.7billion.