**Status: Post-Insolvency Recovery & Strategic Turnaround** IMP Powers Limited is an Indian electrical equipment manufacturer specializing in high-voltage power and distribution transformers. After a period of severe financial distress and a court-mandated insolvency process, the company is currently undergoing a comprehensive revival. It was acquired as a **"Going Concern"** under the **Insolvency and Bankruptcy Code (IBC), 2016**, by a consortium led by **Electrify Energy Private Limited** and **Mr. Rakesh R. Shah**. The company is transitioning from a liquidation status to an active operational phase, focusing on the **"Survive-Stabilise-Sustain-Grow"** framework to reclaim its position in the Indian power infrastructure market. --- ### 1. Strategic Rebirth: The IBC Acquisition & Restructuring The company’s recent history is defined by its successful exit from the **Corporate Insolvency Resolution Process (CIRP)** and subsequent liquidation proceedings. * **Acquisition Terms:** The company was sold as a going concern via E-Auction for a total consideration of **₹78 Crore**. The **Certificate of Sale** was issued on **August 21, 2024**. * **Regulatory Status:** Following the NCLT order, the Ministry of Corporate Affairs updated the company’s status to **"ACTIVE COMPLIANT"** in **July 2025**, officially moving it out of "Under Liquidation." * **Capital Restructuring:** To facilitate the turnaround, the company is reclassifying its Authorized Share Capital to **₹34 Crore** (**3.4 Crore Equity Shares** at **₹10** each). * **Equity Allotment:** Per the resolution plan, the company is issuing **3.23 Crore** new shares to the successful bidders and **17,00,000 Equity Shares** to eligible public shareholders to maintain a listed structure. * **Headquarters Shift:** The Registered Office is being relocated from **Silvassa** to **Ahmedabad, Gujarat**, to centralize strategic and operational management. --- ### 2. Core Engineering Capabilities & Product Portfolio IMP Powers operates in the high-entry-barrier segment of electrical infrastructure, providing critical components for power transmission and distribution. | Product Category | Technical Specifications | Market Application | | :--- | :--- | :--- | | **Power Transformers** | Up to **315 MVA** / **400 kV** Class | Grid transmission and utility substations. | | **Distribution Transformers** | Various standard grid ratings | Localized power distribution networks. | | **Special Purpose Units** | Furnace and Rectifier Transformers | Industrial and heavy manufacturing use. | | **Renewable Solutions** | Inverter Duty Transformers (**IDT**) | Solar, Wind, and Hybrid energy projects. | | **Services** | Repair & Refurbishment up to **400 kV** | Life-extension for existing utility assets. | **Subsidiary Operations:** Through **IMP Energy Limited (IEL)**, the group provides **EPC (Engineering, Procurement, and Construction)** services for Small Hydro Power (**SHP**) plants up to **5 MW**. IEL has successfully commissioned projects at Bairas and Sangrah (**2 x 750KW** each). --- ### 3. Operational Modernization & Manufacturing Footprint The primary manufacturing facility is located in **Silvassa (Dadra & Nagar Haveli)**. Under new management, the facility is undergoing a technological and efficiency-driven overhaul. * **Technology Absorption:** A new **Foil Winding Machine** is slated for commissioning by **August 2025**, specifically to support the production of **Inverter Duty Transformers (IDTs)** for the green energy sector. * **Digitalization:** Implementation of a plant-wide **Optical Fibre LAN**, Cisco EPABX systems, and **ERP-driven** real-time tracking for production and inventory. * **Sustainability Initiatives:** * Investment of **₹25.15 lakhs** (FY 2024-25) in energy-efficient vacuum pumps and natural lighting. * Evaluation of a **100 kW rooftop solar** installation. * R&D into the use of **bio-transformer oil** to meet global environmental standards. --- ### 4. Financial Recovery & Growth Targets The company is emerging from a state of **completely eroded net worth** and **Non-Performing Asset (NPA)** classification. The focus has shifted from debt servicing to revenue generation and volume scaling. **Key Financial Metrics (Historical vs. Target)** | Metric | FY 2023-24 (Audited) | FY 2024-25 (Audited) | FY 2025-26 (Target) | | :--- | :--- | :--- | :--- | | **Total Revenue** | **₹1.55 Crore** | **₹4.67 Crore** | **₹100 Crore** | | **Profit / (Loss) After Tax** | **(₹20.49 Crore)** | **(₹2.08 Crore)** | *Projected Break-even* | | **Volume (MVA)** | Minimal | Repair-led | **1,800 MVA** | | **Order Book Visibility** | - | **1,100 MVA** | **~3,000 MVA** | * **Debt Management:** Borrowings remain classified as **NPA**. No provision for interest or finance charges was made for the year ended March 31, 2025, as the company operates under the IBC-mandated resolution framework. * **Expansion of Limits:** The company is seeking shareholder approval to increase borrowing powers to **₹500 Crore** and investment/loan limits to **₹300 Crore** to fund future growth and potential acquisitions. --- ### 5. Leadership & Governance The board was reconstituted in **November 2024** to bring in seasoned professionals with expertise in power, transmission, and corporate governance. * **Naveen Kumar Singh (CEO & Whole-Time Director):** 20 years of experience in Power Trading and Renewables. * **Maheshwar Sahu (Independent Director):** Former IAS officer; board member at **Ambuja Cements** and **Adani Total Gas**. * **Rabindra Nath Nayak (Independent Director):** Former Chairman of **Power Grid Corporation of India Ltd (POWERGRID)**. * **Dr. Varsha Adhikari (Independent Director):** Strategy and sustainability expert; IIM Calcutta alumna. --- ### 6. Risk Factors & Critical Challenges Despite the successful acquisition, several legacy and operational risks remain: * **Legal Contention:** The e-auction process and distribution of proceeds are currently challenged by **STCI Finance Limited** in the **NCLAT-New Delhi**. * **Audit Qualifications:** Auditors continue to issue qualified opinions regarding the **"Going Concern"** status, lack of **impairment testing** on assets, and unreconciled trade receivables totaling **₹39.61 Crores**. * **Working Capital Constraints:** The company currently lacks non-fund-based limits with banks, which is essential for large-scale bidding. * **Inventory Valuation:** Recent audits noted a failure to include direct labor and manufacturing overheads in inventory valuation for **Q3 FY-26**, leading to potential understatements. * **Legacy Liabilities:** Admitted claims during insolvency totaled **₹495.04 Crore** (Financial: **₹408.24 Cr**; Operational: **₹86.80 Cr**). While the acquisition price was **₹78 Crore**, the resolution of these claims remains a complex accounting process. --- ### 7. Market Outlook & Future Drivers The company is pivoting its business model to capitalize on the massive expansion of the Indian power grid. * **Sector Tailwinds:** Government transmission and distribution (T&D) spending is projected to exceed **₹4.5 Lakh Crore** over the next five years. * **Customer Diversification:** A strategic shift is underway to increase the share of **Non-Government/Private Sector** clients to reduce reliance on slow-paying state utilities and mitigate liquidity risks. * **Export Ambitions:** The company is actively targeting the **Middle East, Africa, Bangladesh, and Sri Lanka**, participating in a tender pipeline aggregating **~30,000 MVA** as of early 2025.