Argus Partners and Luthra and Luthra Law Offices India has advised Adhunik Power & Natural Resources Limited on raising ₹1,400 crore from Davidson Kempner to provide a complete exit to its existing lender Edelweiss Asset Reconstruction Company.
The Argus transaction team consisted of Aastha (Partner), Nidhi Arya (Partner), Dileep Krishnan (Associate) and Surabhi Smita (Associate).
The Luthra and Luthra transaction team was led by Girish Rawat (Partner) and Varun Chauhan (Partner Designate) and comprised of Ashneet Chhabra (Managing Associate) and Ranjini Ghosh (Associate).
This funding, structured as 10-year non-convertible debentures (NCDs) with a 16.89% coupon rate, facilitated the complete exit of Edelweiss Asset Reconstruction Company (ARC) from Adhunik Power, allowing Davidson Kempner to assume control through its affiliated entities
The funds have been used to refinance Adhunik Power’s ₹2,800 crore restructured debt, effectively reducing its borrowing costs by 4–5%. Additionally, the company has boosted its liquidity by recovering ₹780 crore from power distribution companies. The improved valuation of its 540 MW thermal power plant in Jharkhand—from ₹2 crore/MW to ₹3–3.5 crore/MW—has further enhanced its debt-servicing capacity, supporting a viable debt load of around ₹1,600 crore.
Adhunik Power is an Independent Power Producer (IPP) owning and operating a 2x270 MW coal based thermal power plant in Padampur, Saraikela-Kharsawan, Jharkhand State. Adhunik inaugurated its first unit of 2x270 MW coal fired thermal power plant on 16th October 2012.
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