Shares of Indian power companies fall after the Allahabad Court refuses to extend the deadline for finalising resolution plans for stressed power assets as mandated by the RBI.
Monnet Ispat and Energy Ltd falls as much as 4.8 percent to Rs 14.05 while Rural Electrification Corp. Ltd shares fell as much as 4.1 percent to Rs 114.60 and Power Finance Corporation (PFC) Ltd dropped as much as 4.4 percent to Rs 81.15.
The court’s refusal paves the way for sector consolidation, Edelweiss Securities analysts say.
The ruling implies that lenders to such companies will have to either finalize the resolution plan for assets within the next 15 days or refer the defaulting assets to the National Company Law Tribunal for liquidation, the note here says
NTPC Ltd, JSW Energy, Tata Power and Adani Power likely to be key beneficiaries of ruling, says Edelweiss.
Shares of Adani Power Ltd touch their highest since February 14, up as much as 3.3 percent at Rs 34.6; NTPC Ltd climbs as much as 5.1 percent to Rs 174.55, its highest since May 3.
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