The insolvency proceedings against SKS Power Generation were initiated in April 2022 following an objection from Bank of Baroda, whose claim totals Rs 2,560 crore.
In October 2023, the NCLT referred Sarda Energy & Minerals’ resolution plan back for reconsideration after objections were raised. Subsequently, the plan suffered a setback when it was challenged before the National Company Law Appellate Tribunal. But in May 2024, the appellate tribunal set aside the NCLT’s earlier decision, allowing the company to seek final approval, and directed lenders to revise the resolution plan.
Many conglomerates had initially expressed interest in SKS Power but did not submit revised bids. The bidders included NTPC, Jindal Power, Torrent Power and Singapore-based Vantage Point Asset Management. Ultimately, the creditors’ committee voted in favour of SEML’s resolution plan for SKS Power Generation.
However, Torrent Power has approached the NCLAT challenging the approval of Sarda Energy and Mining’s rehabilitation plan for SKS Power Generation. Torrent Power had objected to the selection process, terming it discriminatory and claiming that it had proposed the highest upfront payment. The Torrent Group company also demanded a copy of the approved plan, which was rejected by the NCLT.
The stock fell as much as 2.95% to Rs 336.95 apiece. In comparison, the NSE Nifty 50 index rose 0.51%.
