Shares of power companies gained up to 12 per cent on Tuesday after the Supreme Court quashed a Reserve Bank of India circular on resolving bad debt that may provide relief to these firms. Shares of RattanIndia Power zoomed 12.18 per cent, KSK Energy Ventures 4.60 per cent, Adani Power rose by 2.88 per cent and Jaiprakash Power Ventures 2.69 per cent on BSE.
Vishrov Mukerjee, Partner, J Sagar Associates said after the Supreme Court judgment, the RBI may have to issue revised guidelines or circulars for the restructuring of stressed assets. “There is also a question mark over existing processes which may have been completed/nearing completion,” he said. “However, with the threat of IBC proceedings mitigated, it will give some breathing space to power companies and lenders as well as flexibility to restructure debts in a manner which ensures continuity and value maximisation for lenders as well as power companies,” he added.
