Adani Power in Focus as NCLAT Upholds ₹4,000 Cr Acquisition of Vidarbha Industries Power

SYNOPSIS: NCLAT has upheld Adani Power’s Rs. 4,000-crore acquisition of Vidarbha Industries Power, dismissing challenges and confirming that the resolution process complied with IBC timelines and legal requirements.

During Tuesday’s trading session, shares of India’s largest private sector power generator are in focus on the stock exchanges, following reports on its Rs. 4,000 crore acquisition of Vidarbha Industries Power. Here’s a closer look at the deal and its two-year journey.

At 02:00 p.m., shares of Adani Power Limited were trading at Rs. 138.3 on BSE, compared to its previous closing price of Rs. 140.65, with a market cap of Rs. 2.66 lakh crores. The stock has delivered positive returns of around 27 percent in one year, but has fallen by over 3 percent in the last one month.

NCLAT clears Adani Power’s acquisition

The long-running legal battle around Vidarbha Industries Power has finally reached clarity. The insolvency appellate tribunal, NCLAT, has upheld Adani Power’s acquisition of the debt-ridden power producer, as per sources.

This decision confirms the earlier 18th June 2025 order of the Mumbai bench of the National Company Law Tribunal (NCLT), which had approved Adani Power’s Rs. 4,000-crore resolution plan.

The National Company Law Appellate Tribunal (NCLAT) dismissed appeals filed by Western Coalfields Limited and an employee representative, both of whom had challenged the approval of the resolution plan. The tribunal held that the process was carried out in line with the Insolvency and Bankruptcy Code (IBC).

A bench led by Justice Ashok Bhushan, along with Technical Member Barun Mitra, ruled that the resolution plan complied with statutory requirements and timelines.

Timeline Concerns Dismissed

Western Coalfields, an operational creditor with admitted claims of around Rs. 502.6 crore, argued that the resolution plan was approved by the Committee of Creditor (CoC) after the expiry of the 180-day corporate insolvency resolution process (CIRP) period, without a formal extension from the NCLT. It was also alleged that the resolution professional filed a modified plan after the 180-day window, making the approval procedurally flawed.

These arguments were firmly rejected. The NCLAT observed that the resolution plan had already been submitted to the NCLT on 11th March 2025, well within the prescribed timeline. Any later modification in the acquisition structure was approved by the Committee of Creditors (CoC) and placed before the NCLT without breaching IBC provisions.

The tribunal also reiterated the Supreme Court’s ruling, noting that financial and operational creditors are not required to receive equal payouts. Treating unequal creditors equally is not mandated under the IBC framework.

During the course of the insolvency process, Adani Power revised its resolution plan on 1st April 2025. Under this modification, residual operational debt was extinguished instead of being converted into equity. The tribunal upheld this adjustment, noting that the approved resolution plan expressly allowed changes to the acquisition structure, as long as payouts to stakeholders were not altered.

Financials

Adani Power reported a marginal growth in revenue from operations, experiencing a year-on-year increase of around 1 percent, from Rs. 13,339 crores in Q2 FY25 to Rs. 13,457 crores in Q2 FY26. In contrast, its net profit decreased during the same period from Rs. 3,298 crores to Rs. 2,906 crores, representing a decline of nearly 12 percent YoY.

Adani Power Limited is engaged in the business of selling power under long-term/medium-term/short-term Power Purchase Agreement (PPAs), Supplemental Power Purchase Agreement (SPPAs), on a merchant basis and is also engaged in trading, investment and other business activities.

The company operates an installed capacity of about 18,150 MW across 13 operational power assets. In addition, it has around 23,720 MW of locked-in capacity from 13 projects under various stages of development, taking the company’s target capacity pipeline to ~41,870 MW.

Around 90 percent of its operating capacity is tied up under long-term power purchase agreements (PPAs), providing strong revenue visibility. Of the locked-in capacity, about 12,350 MW is also backed by PPAs. More than 60 percent of Adani Power’s operating fleet runs on supercritical and ultra-supercritical technology.

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