Sarda Energy shares gain 8% after SC dismisses plea of unsuccessful bidders for SKS Power acquisition

Shares of Sarda Energy and Minerals Ltd. gained 8% on Friday, February 27, after the Supreme Court dismissed the plea of unsuccessful bidders for SKS Power.The unsuccessful bidders Torrent Power, Jindal Power and Vantage Point Asset’s management had appealed against Sarda Energy winning the SKS Power acquisition.

The Supreme Court order has cleared the final obstacle for Sarda Energy in acquiring SKS Power.
The SKS Power acquisition will reduce the cyclicality in business.

Sarda Energy reported a weak set of earnings in the third quarter.Its net profit declined 3.55% to 190.4 crore from 197.4 crore in the previous year.

Its revenue was down 3.3% at 1,276 crore from 1,319 crore in the third quarter of the previous fiscal.

The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) declined 15.7% to 310.8 crore from 368.7 crore in the previous year.

Its margin contracted as well to 24.36% from 27.95% in the year-ago period.

Shares of Sarda Energy gained 8.1% to hit an intraday high of ₹561 per share on Friday. The stock was up 6.4% at 551.95 apiece around 1.10 pm. The stock has gained 15.8% in the past month.