Reliance Power Ltd’s shares surged by 5% on September 18, hitting the upper circuit after the company announced the settlement of its ₹3,872 crore obligation as a guarantor for Vidarbha Industries Power Ltd (VIPL). The settlement led to the release and discharge of all corporate guarantees and undertakings related to the outstanding debt.
The company also revealed that it had settled all disputes with CFM Asset Reconstruction, with 100% of VIPL’s shares pledged in favor of CFM. As of 9:15 am, Reliance Power shares were trading at ₹32.97 on the NSE, up by 5% from the previous session.
In a significant update, Reliance Power announced it now holds zero debt from banks and financial institutions. The company’s consolidated net worth stood at ₹11,155 crore by the end of Q1 FY25.
Additionally, Reliance Power, Rosa Power Supply Company, and VIPL are set to withdraw all legal proceedings against CFM Asset Reconstruction, and CFM will do the same, including cases under the Insolvency and Bankruptcy Code.
Despite recent challenges, including a five-year market ban on promoter Anil Ambani by SEBI, Reliance Power clarified that the SEBI order does not affect its business or operations. Anil Ambani had resigned from the board in February 2022, and the company emphasized that no directives were issued against it in the SEBI order.
