Diamond Power exits NCLT mechanism one year ahead of schedule, turnaround complete
- September 11, 2026
Diamond Power Infrastructure Ltd announced that it has completed its exit from the resolution framework of the Insolvency and Bankruptcy Code, 2016 (IBC), administered by the National Company Law Tribunal (NCLT).
The company has prepaid, in full, the entire Rs.501 crore cash together with 30-years bonds aggregating Rs.1,900 crore consideration payable to its erstwhile lenders under the NCLT-approved Resolution Plan.
This amount was contractually payable over five years, with the final instalment due on September 30, 2027. By discharging it one year in advance — and availing the pre-payment discounts extended by the lenders in the plan — every obligation of the promoters under the Approved Resolution Plan now stands fulfilled, and Diamond Power has formally exited the NCLT mechanism, a release by Diamond Power said.
Diamond Power was acquired through the NCLT-supervised process by a consortium comprising Rakesh Shah, GSEC and the Monarch Group. (More details may be found in this tndindia.com story dated December 11, 2024)
Impact of exiting NCLT regime
- With the Resolution Plan fully implemented and no obligation outstanding towards the erstwhile lenders, the company is now eligible to obtain credit ratings from recognised rating agencies in the ordinary course — opening access to bank credit, the debt capital markets and institutional investors on standard commercial terms.
- The company’s complete fixed-asset base — its integrated manufacturing facility at Vadodara, plant and machinery, rod mills and captive power assets — is free of any resolution-era charge and is fully available as security for working-capital and term financing from banks and financial institutions.
- All criminal proceedings involving the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), relating to the conduct of the company prior to its acquisition under the IBC, have already been cleared by the respective Hon’ble courts.
Looking forward
The company returned to sustained profitability in FY 2023-26, and its strategic focus now shifts wholly to scaling MV/EHV cable capacity, deepening backward integration, and expanding its customer base as India undertakes the largest grid build-out in its history and the company will not carry its NCLT tag in large projects, the release said.
Clean, bankable, profitable
According to Rakesh Shah, Promoter Director: “When we took on Diamond Power through the NCLT process, we did so on the conviction that this was a fundamentally strong industrial asset that deserved a second life. Today, having repaid every rupee of the cash consideration a full year ahead of schedule, and with every legacy legal matter behind us, that conviction has been vindicated. Diamond Power is now a clean, rateable, bankable and profitable company — and this is where its real growth story begins.”
Featured photograph (source: DIPL) shows an advanced cable testing equipment in DIPL’s cable testing facilities.