Adani Power Secures Tribunal Nod For Vidarbha Industries Merger, NCLT Mumbai Clears The Way

Mumbai: The Mumbai bench of the National Company Law Tribunal (NCLT) has approved the merger of Vidarbha Industries Power Limited with parent Adani Power Limited, completing tribunal approvals for the power producer’s wider consolidation of 10 subsidiaries.

Judicial member Vinay Goel and technical member Charanjeet Singh Gulati sanctioned the amalgamation on Thursday. The appointed date under the scheme is April 1, 2025.

Final approval for 10-subsidiary merger

The NCLT’s Ahmedabad bench had approved the merger of nine other Adani Power subsidiaries in August. Vidarbha Industries required a separate decision from the Mumbai bench, where its merger proceedings were pending.

The wider scheme covers subsidiaries involved in power generation, fuel management and infrastructure, alongside Vidarbha Industries.

Shares held by Adani Power and its nominees in the merging subsidiaries will be cancelled. The scheme provides for no new Adani Power shares to be allotted for those holdings.

What the merger means

According to the scheme, combining the businesses is expected to simplify management, reduce overlapping expenses and improve the use of resources. The companies also expect greater operational flexibility and financial strength. These are projected benefits, rather than efficiencies already achieved.

Vidarbha Industries, incorporated in 2005, operates a 600 MW thermal power plant in Nagpur, Maharashtra, comprising two 300 MW units. Adani Power, incorporated in 1996, had an operational thermal and solar capacity of 14,550 MW across India, according to the merger documents.

The Mumbai tribunal approved Adani Power’s ₹4,000 crore resolution plan for Vidarbha Industries in 2025. The National Company Law Appellate Tribunal upheld that order in January.

The authorised share capital of Vidarbha Industries is ₹1,000 crore, while Adani Power’s is ₹28,000 crore.

At 11.15 am IST, Adani Power shares traded at ₹202.40 on the National Stock Exchange, down 1.2% from the previous close. The price was an intraday snapshot.