Sarda Energy Shares Soar 8% After Supreme Court Dismisses Appeals by Torrent Power, Jindal and Others

SYNOPSIS: The Supreme Court upheld the company’s Rs. 1,950 crore resolution plan for SKS Power, dismissing rival appeals and reinforcing the primacy of lenders’ commercial wisdom under the Insolvency and Bankruptcy Code.

During Friday’s trading session, shares of an integrated energy and minerals company with interests spanning mining, steel, ferro alloys, and power generation surged more than 8 percent on the stock exchanges. So, what triggered this sharp rise? Let’s break it down in this article.

With a market cap of Rs. 19,356.3 crores, shares of Sarda Energy & Minerals Limited were trading in the green at Rs. 549.3 on BSE, up by around 6 percent, as against its previous closing price of Rs. 518.45. The stock has delivered positive returns of around 8 percent in the last one year, and has gained by over 15 percent in the last one month.

What’s the News:

In a significant ruling, the Supreme Court (SC) has dismissed appeals filed by Torrent Power, Jindal Power and Vantage Point Asset Management, thereby upholding the Rs. 1,950 crore resolution plan of Sarda Energy for SKS Power Generation (Chhattisgarh) Limited. The court reaffirmed that the “commercial wisdom” of the Committee of Creditors (CoC) holds primacy under the Insolvency and Bankruptcy Code (IBC) and cannot be overridden through judicial intervention.

The court observed that since the resolution plan of Sarda Energy had already been approved by both the National Company Law Tribunal (NCLT) and the National Company Law Appellate Tribunal (NCLAT), and had also been implemented, there was no ground for interference. Consequently, it found no merit in the appeals.

Emphasising the legislative intent behind the IBC, the SC stated that decisions related to viability, valuation, and acceptable haircuts are inherently commercial in nature. These matters, it clarified, fall within the exclusive domain of financial creditors and not the judiciary. Courts, therefore, do not substitute their own assessment for that of the CoC.

The bench further noted that while the NCLT plays a supervisory role to ensure compliance with statutory provisions and procedural fairness, it must refrain from second-guessing commercial decisions. According to the court, respecting institutional boundaries preserves the integrity of the insolvency framework and ensures that the resolution process remains predictable, time-bound and market-driven.

Background of the SKS Power Insolvency Case

The legal battle traces back to 1st October 2024, when the NCLAT upheld the approval of Sarda Energy’s Rs. 1,950 crore bid to acquire SKS Power Generation. At the time, the appellate tribunal had rejected objections raised by competing bidders, including Torrent Power, NTPC, Jindal Power and Vantage Point.

Earlier, in April 2022, the Mumbai bench of the NCLT had admitted a petition filed by Bank of Baroda to initiate insolvency proceedings against SKS Power, which had total admitted claims of Rs. 2,560 crore. Subsequently, on 13th August 2024, the NCLT approved Sarda Energy’s resolution plan, which addressed nearly the entire dues of financial creditors.

Sarda’s proposal received the required majority support from the CoC. SKS Power is primarily engaged in the business of generating power and operates a 4×300 MW coal-based thermal power plant located at Binjkote and Durramuda in Raigarh district, Chhattisgarh. With the Supreme Court’s latest ruling, the resolution process has now received final judicial endorsement.

Sarda Energy & Minerals Limited, a leading manufacturer and exporter of Ferro Alloys, has an integrated steel manufacturing facility, starting from iron ore mining to the finished steel in the form of wire rod and H.B. wire. It operates iron ore and coal mines in Chhattisgarh, along with manufacturing facilities in Raipur and Vizag, supported by thermal and hydro power capacities totalling over 925 MW.

The company reported a marginal decline in revenue from operations, experiencing a year-on-year decrease of more than 3 percent, from Rs. 1,319 crores in Q3 FY25 to Rs. 1,276 crores in Q3 FY26. Likewise, its net profit slipped nearly 5 percent to Rs. 190 crores from Rs. 200 crores over the same period.

Looking ahead, the management expects operating conditions to improve as seasonal factors ease, supported by normalisation in power demand and improving visibility across the metal segment. Sarda Energy continues to advance its strategic priorities across energy, mining, and metals, with focused investments in clean energy, integrated mining, and operational efficiency. 

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