The National Company Law Appellate Tribunal (NCLAT) in Delhi has upheld Adani Power Limited's ₹4,000.00-crore resolution plan for Vidarbha Industries Power Limited (VIPL), marking a significant milestone in the company's asset acquisition strategy. The appellate tribunal dismissed appeals filed by Western Coalfields Limited and employees of VIPL, who had challenged the earlier approval by the National Company Law Tribunal (NCLT) Mumbai bench.

NCLAT Ruling Details

The NCLAT comprehensively rejected all objections raised by the appellants after thorough examination of the case. The tribunal found that the appeals lacked merit and failed to demonstrate any violations of the Insolvency and Bankruptcy Code (IBC). In its detailed order, the appellate tribunal stated that "the pay outs to the operational creditor including the employees cannot be said to be violating the provisions of Section 30(2)(b) of the IBC."

Asset and Compliance Assessment

The NCLAT observed that the resolution plan fully complied with all statutory requirements under the insolvency framework. The tribunal noted that the Committee of Creditors had exercised proper commercial discretion in accordance with established legal provisions. The appellants failed to prove any violations in the approval process of the resolution plan.

Power Asset Details

The ruling confirms Adani Power's acquisition of a strategically located power generation facility. The asset specifications and location details are outlined below:

Market Performance

Adani Power's shares closed at ₹140.30 on January 19, reflecting a decline of ₹2.33 or 1.63% for the trading session. The stock movement occurred alongside the tribunal's favorable ruling on the resolution plan.

The NCLAT's decision provides legal certainty for Adani Power's expansion plans and validates the company's approach to acquiring distressed power assets through the insolvency resolution process. The ruling demonstrates the effectiveness of the IBC framework in facilitating corporate restructuring while protecting stakeholder interests.

Adani Power Limited has secured favorable credit rating actions from CareEdge Ratings, with the agency assigning and reaffirming CARE AA; Stable ratings across the company's comprehensive facility portfolio worth ₹69,000 crore. The rating actions demonstrate strong confidence in the power generation company's financial profile and operational capabilities.

Credit Rating Details

CareEdge Ratings has taken multiple rating actions on Adani Power's facilities, combining new assignments with reaffirmations of existing ratings. The comprehensive rating coverage spans across different types of financial instruments and facilities.

The rating agency has assigned CARE AA; Stable rating to additional term loan facilities worth ₹12,000.00 crore, while reaffirming the same rating grade on existing bank facilities of ₹46,000.00 crore and proposed Non-Convertible Debentures valued at ₹11,000.00 crore.

Rating Rationale

The CARE AA; Stable rating reflects several key strengths in Adani Power's business profile and financial position. CareEdge Ratings has highlighted the company's strong revenue visibility, which stems from a high degree of tie-ups for its operational capacity, ensuring predictable cash flows.

The rating agency has also recognized the company's stable operating performance and robust balance sheet position. Additionally, Adani Power benefits from a diverse set of offtakers, which helps mitigate concentration risk and provides revenue stability across different customer segments.

Strategic Positioning

The rating assessment takes into account Adani Power's recent tie-ups for upcoming capacity, indicating the company's growth trajectory and expansion plans. This forward-looking capacity addition demonstrates the company's ability to secure long-term contracts and maintain its competitive position in the power generation sector.

The comprehensive rating coverage across different facility types provides Adani Power with enhanced financial flexibility and access to diverse funding sources. The reaffirmation of existing ratings alongside new assignments indicates consistent credit quality across the company's financial instruments.

Regulatory Compliance

Adani Power has disclosed these rating actions in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has informed both BSE Limited and National Stock Exchange of India Limited about the credit rating developments, ensuring transparency with stakeholders and regulatory authorities.