NEW DELHI: The total market capitalisation of stressed companies that have been rescued under the ten-year-old insolvency law has more than tripped to Rs 9 lakh crore from about Rs 2.8 lakh crore in five years after resolution, according to a study by IIM-Ahmedabad.
It reflects “improved investor confidence and growth prospects following successful resolution with creditors”, the Insolvency and Bankruptcy Board of India (IBBI) said in a statement, citing the study commissioned by it.
The study showed average sales of the resolved firms have surged 89% in the five years post-resolution and their asset turnover ratio has climbed 131%, suggesting enhanced operational efficiency.
The study on the effectiveness of the Insolvency and…