Shares of Vedanta rose around 2 percent on Friday after the metal major acquired the entire stake in Athena Chhattisgarh Power for Rs 564.7 crore. However, the stock could not hold on to initial gains and slipped into the red.

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At 1514 IST, shares of Vedanta were trading down 1.8 percent at Rs 223.7 on the BSE.

"Athena Chhattisgarh Power is a 1,200MW coal-based power plant located at Jhanjgir Champa district, Chhattisgarh. The Plant has 2 units of 600MW each. Unit 1 and Unit 2 are 80 percent and 30 percent complete respectively and therefore, the company has never been operational," the company said in a BSE filing.

"The company was admitted under Corporate Insolvency Resolution Process (CIRP) on May 15, 2019, and on May 13, 2021, NCLT Hyderabad bench directed initiation of the liquidation process of the company," it said.

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The acquisition will fulfil the power requirement for Vedanta’s aluminium business, and via vertical integration add synergies by providing a cost advantage pertaining to power consumption, Vedanta said.

The acquisition is estimated to be completed in the current financial year.

The plant is well connected to national highways and railway stations and is also located in close proximity to its water source, the Mahanadi river, it added.

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(Edited by : Shoma Bhattacharjee)

First Published:Jul 7, 2022 6:35 PM IST