Revitalized Firms: A Decade of Success Under Insolvency & Bankruptcy Code

A recent study conducted by IIM Ahmedabad highlights a remarkable improvement in the financial and operational performance of firms resolved under the Insolvency and Bankruptcy Code (IBC). The study, which expands on analysis from 2023, provides new insights by extending its coverage to include developments up to 2025.

According to the research, the average sales of resolved firms soared by 89 percent within five years post-resolution, alongside an impressive 131 percent increase in asset turnover ratio. These findings indicate a robust revival of business activities post-resolution. Capital expenditure also saw a significant rise of around 106 percent, reflecting renewed investment and economic viability.

IIM Ahmedabad noted that the market valuation of these firms nearly tripled, reaching Rs 9 lakh crore, showcasing increased investor confidence. The findings underscore the effectiveness of the IBC framework, as the code celebrates a decade of facilitating successful resolutions, attracting fresh investments, and enhancing corporate productivity.