Diamond Power Infrastructure Limited has announced its complete exit from the Insolvency and Bankruptcy Code (IBC) resolution framework, a full year ahead of its scheduled deadline of September 30, 2027. The company prepaid the entire ₹501 crore cash consideration and ₹1,900 crore in bonds, totalling ₹2,401 crore, to its erstwhile lenders. This strategic move clears all legacy legal matters and makes the company eligible for credit ratings and bank financing.
Diamond Power Completes NCLT Exit Early
Diamond Power Infrastructure Limited has successfully completed its exit from the resolution framework of the Insolvency and Bankruptcy Code, 2016 (IBC), administered by the National Company Law Tribunal (NCLT). This significant achievement comes a full year ahead of the originally planned schedule, with all obligations fulfilled by September 2026, rather than the stipulated September 30, 2027. The company prepaid the entire aggregate consideration of ₹2,401 crore, comprising ₹501 crore in cash and ₹1,900 crore in 30-year redeemable bonds, to its erstwhile lenders under the NCLT-approved Resolution Plan.
Financial and Operational Implications
The early repayment, which included availing pre-payment discounts, signifies the full fulfillment of all promoter obligations under the Approved Resolution Plan. This exit from the NCLT mechanism is expected to have several positive implications for Diamond Power. The company is now eligible to obtain credit ratings from recognized agencies, facilitating easier access to bank credit, debt capital markets, and institutional investors on standard commercial terms. Furthermore, its entire gross block of fixed assets, including its integrated manufacturing facility, plant and machinery, rod mills, and captive power assets, is now free of any resolution-era charge and is fully available as security for working-capital and term financing.
Clearing Legacy Issues and Future Growth
With this exit, Diamond Power has cleared all legacy legal matters, including proceedings involving the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) from prior to its acquisition under the IBC. The company now presents a clean, profitable platform with a debt-light balance sheet and a five-decade manufacturing legacy. It possesses captive aluminium rod mills, captive wind power, and a comprehensive product range spanning LV, MV, HV, and EHV power cables, along with overhead conductors. The company returned to sustained profitability in FY 2023-26, and its strategic focus will now shift towards scaling MV/EHV cable capacity, deepening backward integration, and expanding its customer base, particularly as India undertakes significant grid build-out initiatives.
Management Commentary
Mr. Rakesh Shah, Promoter Director, stated, “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.”
Mr. Himanshu Shah, Promoter Director, added, “With a rated, bankable balance sheet and every asset free to fund growth, our ambition is to build Diamond Power into a global cables and conductors major. This is the beginning of a glorious future, and we invite investors in India and across the world to be part of it.”
Source: BSE
