Sarda Energy hits 52-week high on nod to raise coal production to 1.68 MTPA

Shares of Sarda Group’s flagship company, Sarda Energy and Minerals Ltd, surged as much as 5.4%, reaching a 52-week high of ₹467 apiece on the BSE today, following approval from the Chhattisgarh Environment Conservation Board, Raipur, to increase coal production from 1.44 million tonnes per annum (MTPA) to 1.68 MTPA.

At the time of reporting, Sarda Energy’s shares were up 3.08% at ₹456.65 apiece on the BSE. The stock opened higher today at ₹450.05, in sync with the strong broader market, compared to its previous close of ₹443.00. The company’s market cap stood at ₹16,091.50 crore. Over the past month, the stock has surged 30.61%, jumped 117.14% in the last six months, and gained 78.97% year-to-date (YTD).

The company informed the exchanges that it has received clearance from the Chhattisgarh Environment Conservation Board, Raipur, for expanding its Gare Palma IV/7 Coal Mine (Karwahi Open Cast Coal Mine).

In August, the Mumbai Bench of the National Company Law Tribunal (NCLT) greenlit Sarda Energy and Mining's acquisition of SKS Power Generation (Chhattisgarh), rejecting competing bids, including one from Torrent Power. “The Resolution Plan provides for payment of ₹1,805 crores plus CIRP Cost, IMC Cost, Surplus Cash, Margin Money, Litigation Benefits and Avoidance Benefits, specified in the Plan Approval Order. The acquisition will be completed upon implementation of the Resolution Plan by SEML as per the terms of the NCLT Approval Order read with the Resolution Plan,” SEML stated.

Ahmedabad-based Torrent Power, which had offered a higher upfront payment to acquire SKS Power Generation (Chhattisgarh), appealed to the National Company Law Appellate Tribunal (NCLAT), challenging the NCLT’s approval of Sarda Energy and Mining's (SEML) resolution plan for the financially troubled SKS Power Generation. Torrent Power criticised the selection process as biassed and sought access to the approved resolution plan, which the NCLT refused to provide.

The Torrent group company asserted that its higher proposed upfront payment should have qualified it as the successful bidder instead of “Respondent No. 2 (SEML),” which it argued had lesser qualitative and quantitative credentials.

Sarda Energy and Minerals reported a net profit of ₹198.76 crore in Q1 FY25, compared to ₹170.83 crore in the same period last year. Revenue declined by 11.8% to ₹1,001.20 crore in the quarter ended June 2024, compared to ₹1,135.20 crore in the previous year.