Vikram Solar Shares Drop 3% as NCLT Admits Insolvency Petition

Shares of solar module manufacturer Vikram Solar fell nearly 3% on Monday following a significant legal setback in the National Company Law Tribunal (NCLT). The Kolkata bench admitted an insolvency petition filed against the company, triggering immediate investor caution in the market.

The Dispute: Isitva Steels vs. Vikram Solar

The insolvency proceedings were initiated by Isitva Steels Private Limited (ISPL), which has alleged non-payment of dues related to civil works sub-contracted in 2018. The dispute stems from a solar EPC (Engineering, Procurement, and Construction) power project being established in Andhra Pradesh.

According to exchange filings, the total claim amount filed by ISPL is approximately ₹9.44 crore. This figure includes a principal amount plus an interest component of roughly ₹4.21 crore. Vikram Solar has "actively and vigorously disputed" these claims, asserting that a full and final settlement agreement was already entered into between the two parties on December 7, 2019.

In response to the NCLT order, Vikram Solar has announced its intention to challenge the decision. The company is currently in the process of filing an appeal before the National Company Law Appellate Tribunal (NCLAT) and is consulting legal advisors to determine further courses of action.

As part of the insolvency process, the NCLT has appointed Tripti Agarwal as the Interim Resolution Professional (IRP) to oversee the company's affairs during this period.

Analysis of Vikram Solar’s Market Volatility

The recent dip follows a period of intense volatility for the solar manufacturer. After a highly successful IPO in August last year—which saw a massive 56.42 times subscription led by Qualified Institutional Buyers (QIBs) at 145.10 times—the stock has experienced significant swings.

Following its debut at a 2% premium (Rs 338), the stock surged 21% to reach a 52-week high of Rs 407.95 in September 2025. However, it subsequently faced a brutal correction, tumbling over 60% to hit a 52-week low of Rs 162.10 in February this year. While the stock has staged a 20% recovery from those lows to trade around Rs 195.01, the sudden insolvency news has once again pressured the share price.

Key Takeaways

  • Insolvency Trigger: The NCLT admitted a petition from Isitva Steels regarding disputed dues of ₹9.44 crore related to a 2018 Andhra Pradesh project.
  • Company Defense: Vikram Solar disputes the claim, citing a "full and final settlement" reached in December 2019, and is appealing the order via the NCLAT.
  • Stock Performance: The news caused a 3% drop, adding to the stock's history of extreme volatility, ranging from a high of ₹407.95 to a low of ₹162.10.