Reliance Power hits back-to-back upper circuit as shares rise on debt repayment news

Shares of Reliance Power Limited surged, hitting back-to-back upper circuits for two consecutive days. As of 9:52 am, the stock was trading 4.98% higher at ₹45.76 on news of a substantial debt repayment by its subsidiary, Rosa Power Supply Company Limited. Rosa Power prepaid a loan of ₹485 crore to Singapore-based Varde Partners, achieving a zero-debt status, which strengthens its balance sheet significantly. With this recent repayment, Rosa Power’s total prepayment has reached ₹1,318 crore.

Earlier in September, Rosa Power had prepaid ₹833 crore to Varde Partners as part of its debt-reduction efforts. The company operates a 1,200 MW coal-based thermal power plant located in Rosa village, near Shahjahanpur, Uttar Pradesh, which contributes significantly to its operations.

Reliance Power’s financial position has been further bolstered by a recent issuance of equity-linked warrants worth ₹1,525 crore, which is expected to increase the company’s net worth from ₹11,155 crore to over ₹12,680 crore. This strengthened financial foundation and debt-free status align with Reliance Power’s strategic shift towards the renewable energy sector. With zero bank debt as a listed entity, Reliance Power is well-positioned to explore and expand in sustainable energy opportunities.

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