Mumbai, Jan 20 : Shares of Adani Power are expected to remain under the spotlight during trading 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 appellate tribunal dismissed appeals filed by Western Coalfields and Vidarbha employee Pradeep Sot, which challenged the earlier approval granted by the National Company Law Tribunal (NCLT). With this ruling, Adani Power has secured strong legal backing for its resolution plan.
A two member NCLAT bench upheld the NCLT Mumbai decision approving Adani Power’s plan, noting that objections raised were without merit and failed to demonstrate any breach of the Insolvency and Bankruptcy Code (IBC). The tribunal highlighted that the Committee of Creditors (CoC) exercised its commercial discretion fairly and lawfully.
In its 18-page judgment dated January 16, NCLAT concluded, “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.”
Stock Performance and Valuation
Adani Power shares closed 1.46% lower at Rs 140.56 on the NSE on Monday. The stock trades at a P/E ratio of 22.86, a P/S of 3.49, and a P/B of 4.73, reflecting market pricing relative to earnings, revenue, and net worth.
Technical Outlook
The 14 day Relative Strength Index (RSI) stands at 41.4, indicating weak-to-neutral momentum. Shares are trading below six of their eight key simple moving averages, pointing to near term bearish pressure.
Market Takeaway
While the NCLAT approval provides a positive fundamental trigger, Adani Power’s short-term price movement is likely to remain influenced by broader market sentiment and technical trends.