Diamond Power Infrastructure up 9.0% on early NCLT exit and full resolution plan prepayment

In a press release dated 11 September 2026 (Annexure B to its exchange filing), Diamond Power Infrastructure said it has completed its exit from the resolution framework of the Insolvency and Bankruptcy Code, 2016, administered by the National Company Law Tribunal (NCLT).

The company highlighted that the NCLT-approved resolution plan consideration of ₹2,401 crore has now been prepaid or fully implemented:

• Upfront cash consideration of ₹501 crore, which was contractually payable over five years up to 30 September 2027, has been "prepaid in full" as of September 2026 (page 2).
• ₹1,900 crore of 30-year redeemable bonds, carrying a coupon of 0.001% and redeemable at an NPV of 16% per annum, form the other leg of the plan consideration (page 2).
• The press release summarises this as total consideration (cash plus bonds) of ₹2,401 crore, with the "Resolution Plan fully implemented" (page 3).

By discharging the cash leg a full year ahead of the 30 September 2027 deadline and availing the pre-payment discounts extended by lenders, the company states that "every obligation of the Promoters under the Approved Resolution Plan now stands fulfilled" and that Diamond Power has "formally exited the NCLT mechanism" (page 2).

While the headline that Diamond Power has exited NCLT was known at a high level, the detailed press release gives the market clarity on three points that go directly to valuation: funding access, asset encumbrance and legal overhang.

According to the section "WHAT MEANS FOR DIAMOND POWER INFRASTRUCTURE LTD" (page 3), the company says:

• It is now "eligible to obtain credit ratings from recognised rating agencies in the ordinary course" with "no obligation outstanding towards the erstwhile lenders".
• Its "complete fixed-asset base" — including the integrated manufacturing facility at Vadodara, plant and machinery, rod mills and captive power assets — is "free of any resolution-era charge" and "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."

For equity investors, this combination — eligibility for mainstream credit ratings, unencumbered assets for bank funding, and cleared legacy cases — reduces perceived risk around the franchise and can support a higher willingness to pay for future earnings, even though the filing itself does not provide fresh financial results or margin data.

The company uses the press release to explicitly mark a shift from rescue to expansion.

Diamond Power describes itself as a "clean, profitable platform" with a "debt-light balance sheet" and a "five-decade manufacturing legacy" (page 3). It points to captive aluminium rod mills, captive wind power, and a product range spanning LV, MV, HV and EHV power cables and a full portfolio of overhead conductors.

Crucially for the narrative, the company notes that it "returned to sustained profitability in FY 2023-26" and that its strategic focus "now shifts wholly" to:

• Scaling MV/EHV cable capacity
• Deepening backward integration
• Expanding its customer base as India undertakes "the largest grid build-out in its history"

The company also flags that it "will not carry its NCLT Tag in large Projects" going forward (page 3), which may matter for winning orders from utilities and large EPC clients that are sensitive to counterparty risk.

This follows an earlier exchange disclosure this month about a ₹76 crore order for 66 kV EHV cables, underlining that the order book is already benefiting from the cleaner profile. The latest filing extends that story from orders to capital structure and legal status.

Management quotes in the press release are aimed squarely at investors and lenders who remember the company’s stressed past.

Promoter Director Rakesh Shah says their conviction in acquiring Diamond Power through NCLT has been "vindicated" now that "every rupee of the cash consideration" has been repaid "a full year ahead of schedule" and "every legacy legal matter" is behind the company (page 4). He calls Diamond Power "a clean, rateable, bankable and profitable company" and says "this is where its real growth story begins."

Promoter Director Himanshu Shah emphasises that while the company had lost "its lenders, its customers and its confidence" before acquisition, "the plant, the know-how and the DICABS name were all intact" (page 4). He frames the early fulfilment of commitments as a way of rebuilding trust and says the ambition is to "build Diamond Power into a global cables and conductors major" with "a rated, bankable balance sheet and every asset free to fund growth."

These statements do not introduce new financial projections, but they reinforce the message that the turnaround phase is over and that management is now positioning the company for scale.

Exchange data show that Diamond Power Infrastructure shares were already up on the day before the press release was filed. The stock then extended gains, last changing hands at Rs 365, up 9.0%.

Given that much of the intraday move preceded the filing, it would be overstating matters to say the announcement alone drove the rally. However, the detailed disclosure about the ₹2,401 crore resolution plan being fully implemented, the early prepayment of the ₹501 crore cash component, and the clearing of CBI and ED cases appears to have given the market a more concrete basis to price in a lower risk profile and a cleaner runway for growth.

The filing does not provide fresh quarterly revenue, profit or margin figures, and it does not break out any financial ratios. The current reaction therefore seems tied less to near-term earnings and more to the structural shift in Diamond Power’s capital and legal position.

As always, how sustainable the re-rating proves will depend on how effectively the company converts this cleaner balance sheet and NCLT-free status into profitable growth in its cables and conductors business.