Adani Power Shares in Focus as NCLT Approves ₹4,000 Crore Acquisition of Vidarbha Industries Power

In a key development in India’s power and insolvency sectors, the Mumbai bench of the National Company Law Tribunal (NCLT) has approved Adani Power Ltd's proposal to acquire Vidarbha Industries Power Ltd (VIPL) for ₹4,000 crore. The acquisition marks a major step in Adani Power’s expansion and is part of a resolution process under the Insolvency and Bankruptcy Code (IBC).

Background of the Resolution Process

VIPL was formerly a subsidiary of Reliance Power, part of the Anil Ambani group. The company had defaulted on loans amounting to ₹3,872 crore to Axis Bank and the State Bank of India, leading to its classification as a non-performing asset (NPA) in 2019. The default eventually triggered insolvency proceedings.

In September 2023, the NCLT admitted an application by CFM Asset Reconstruction Company to initiate the Corporate Insolvency Resolution Process (CIRP) against VIPL. By October 2023, CFM ARC had acquired VIPL’s debts from the original lenders.

On February 24, 2025, Adani Power disclosed in a stock exchange filing that lenders had approved its resolution plan, subject to necessary regulatory and tribunal clearances. With the NCLT’s approval now in place, the implementation of the plan is expected to move forward.

Tribunal’s Observation

The tribunal, in its order, noted that the resolution plan is binding on all stakeholders, including VIPL, its employees, creditors, guarantors, and shareholders. The bench also stated that no objections were filed against the plan by any stakeholders during the CIRP.

The admitted liabilities of VIPL stood at ₹6,753 crore, and the approved resolution plan proposes a payment of ₹4,000 crore, indicating a substantial recovery for secured creditors.

Adani Power Share Price Performance

As of June 20, 2025, 10:10 AM, shares of Adani Power Ltd were trading at ₹535.45, down ₹1.05 or 0.20% from the previous close of ₹536.50. The stock opened slightly higher at ₹538.00, reached an intraday high of ₹544.50, and touched a low of ₹532.55 in early trade. The Volume Weighted Average Price (VWAP) stood at ₹537.61, indicating moderate trading activity.

Read More: Stock Market Sees ₹40,000 Cr in Promoter, PE/VC Exits Amid Strong DII Flows in June.

Conclusion

Adani Power’s acquisition of VIPL adds another significant asset to its power portfolio and signals ongoing consolidation in India’s thermal power sector. The approval by NCLT not only facilitates the revival of a distressed asset but also reflects the growing role of large private sector players in navigating and resolving corporate insolvencies under the IBC framework.

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