Insolvency Threat Strikes: Vikram Solar Shares Tumble as NCLT Admits Claim from Isitva Steels
Vikram Solar shares witnessed a downturn, falling by 2% and trading at Rs 196.3 apiece on June 22. This dip followed an order issued by the National Company Law Tribunal (NCLT) which admitted an insolvency petition filed against the company by Isitva Steels. The development has placed intense focus on the company's legal standing regarding a disputed debt claim of Rs 9.44 crore.The NCLT had admitted the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) after receiving the order on June 18. The petition relates to alleged non-payment of dues from civil works subcontracted to ISPL in 2018 for a solar EPC power project conducted in Andhra Pradesh.
Details of the Debt Dispute and Company’s Defense
Vikram Solar has strongly contested the claim brought by Isitva Steels. The disputed debt includes interest, amounting to about Rs 4.21 crore. The company contends that the entire claim is invalid as a full and final settlement agreement was executed between the parties on December 7, 2019.Despite the legal challenge from the NCLT bench in Kolkata, Vikram Solar confirmed it will be appealing the decision to the National Company Law Appellate Tribunal (NCLAT). The company stated that it is consulting legal advisors to explore all possible remedies aimed at protecting both its shareholders and the interests of the corporation.
Navigating Crisis: Appointment of Resolution Professional
Following the NCLT's admission of the insolvency petition, Tripti Agarwal has been appointed as the Interim Resolution Professional. This professional will oversee the immediate corporate restructuring process in line with the IBC framework.The company is actively working to manage this situation while simultaneously showcasing its underlying financial stability and operational momentum, which contrasts sharply with the current legal uncertainty.
Financial Resilience Amid Legal Scrutiny
While facing legal pressure, Vikram Solar continues to demonstrate strong operational performance. The company reported achieving a revenue of Rs 4,802 crore and a net profit of Rs 470 crore in fiscal year 2026 (FY26).Furthermore, the firm stated that it possesses no long-term debt as of March 31, 2026. The financial health indicators have also improved significantly, with the net working capital cycle shortening to 44 days from the 82 days recorded in fiscal 2025.
The company reiterated its strong creditworthiness in a stock exchange filing, noting that existing lenders have confirmed that the accounts of Vikram Solar are reported as standard and regular, confirming the company's ability to meet all obligations in the ordinary course of business.
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