Reliance Power Becomes Debt-Free: Shares Skyrocket to Upper Circuit

Reliance Power has successfully settled obligations worth ₹3,872 crore, achieving a debt-free status. This significant milestone has resulted in the company’s shares hitting the upper circuit on the stock market.

Debt Settlement Details

The company settled its obligations as a guarantor on behalf of Vidarbha Industries Power Limited (VIPL). This settlement led to the release and discharge of all corporate guarantees, undertakings, and obligations related to the outstanding debt of ₹3,872.04 crore. Additionally, Reliance Power has settled all disputes with CFM Asset Reconstruction, pledging 100% of VIPL’s shares to CFM in exchange for the release of the guarantee.

Market Reaction

Following the announcement, Reliance Power’s shares surged by 5%, reaching ₹32.97 on the National Stock Exchange (NSE). This positive market reaction reflects investor confidence in the company’s improved financial health.

Financial Position

With the debt settlement, Reliance Power now has zero debt from banks and financial institutions. The company’s consolidated net worth stands at ₹11,155 crore as of the end of the first quarter in FY25.

Conclusion

Reliance Power’s achievement of a debt-free status marks a significant turnaround for the company, positioning it for future growth and stability in the market.