Indian power cos fall; court refuses to extend stressed assets resolution deadline

JSW Ispat Special Products

28/08/2018 08:07

** 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  MNET.NS  falls as much as
4.8 pct to 14.05 rupees while Rural Electrification Corp Ltd
 RURL.NS  shares fall as much as 4.1 pct to 114.60 rupees and
Power Finance Corporation Ltd  PWFC.NS  drop as much as 4.4 pct
to 81.15 rupees
    ** 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 https://www.edelresearch.com/showreportpdf-41298/POWER_-_SECTOR_UPDATE-AUG-18-EDEL
 says
    ** NTPC Ltd, JSW Energy, Tata Power and Adani Power likely
to be key beneficiaries of ruling - Edelweiss
    ** Shares of Adani Power Ltd  ADAN.NS  touch their highest
since Feb 14, up as much as 3.3 pct at 34.6 rupees; NTPC Ltd
 NTPC.NS  climbs as much as 5.1 pct to 174.55 rupees, its
highest since May 3
    

 ((Reuters Messaging: sharnya.g.thomsonreuters.com@reuters.net))