Shares of Adani Power are expected to remain in focus today during the trading session on January 20 after the National Company Law Appellate Tribunal (NCLAT) upheld the company’s Rs 4,000-crore acquisition of Vidarbha Industries Power.
The Insolvency and Bankruptcy Appellate Tribunal (NCLAT) has dismissed appeals filed by Western Coalfields and Pradeep Sot, an employee of debt-laden Vidarbha Industries Power, challenging the earlier approval granted by the National Company Law Tribunal (NCLT). With this ruling, Adani Power has secured significant legal support for its resolution plan.
A two-member NCLAT bench upheld the Mumbai bench of the NCLT’s decision approving Adani Power’s resolution plan for Vidarbha Industries Power. The appellate tribunal noted that the objections raised by the petitioners were without substance and failed to demonstrate any breach of the Insolvency and Bankruptcy Code (IBC).
In an 18-page judgement dated January 16, the NCLAT stated that Adani Power’s resolution plan complied with all statutory requirements. The judgment further noted that the Committee of Creditors (CoC) had exercised its commercial discretion fairly and lawfully. The tribunal concluded that there were no valid grounds to interfere with the NCLT’s approval of the resolution plan submitted by Adani Power.
“We are of the view that no grounds have been made out to interfere with the impugned order approving the resolution plan submitted by Adani Power,” the NCLAT said in a statement.
On the stock performance front, Adani Power shares closed 1.46% lower at Rs 140.56 on the NSE in Monday’s trading session.
On the valuation front, the stock is trading at a price-to-earnings (P/E) multiple of 22.86. Its price-to-sales (P/S) ratio is 3.49, while the price-to-book (P/B) ratio stands at 4.73 — reflecting how the market is pricing the company relative to its earnings, revenues, and net worth.
According to Trendlyne data, the technical outlook remains weak to neutral. The 14-day Relative Strength Index (RSI) is at 41.4, below the midpoint, suggesting muted momentum, though not yet in oversold territory.
Moreover, Adani Power is trading below six of its eight key simple moving averages, pointing to bearish near-term momentum.
Overall, while the NCLAT approval serves as a positive fundamental trigger for the stock, short-term price action is likely to remain influenced by broader market sentiment and technical trends.
Source: Economic Times