September 18, 2024
New Delhi, India
Reliance Power
Reliance Power Ltd saw its shares hit the 5% upper circuit on September 18, following the company’s announcement that it has fully settled its ₹3,872 crore debt as a guarantor for Vidarbha Industries Power. This marks a major milestone for the company, as it achieves debt-free status with no outstanding liabilities from banks or financial institutions.
Key Highlights
- Debt Settlement: Reliance Power has settled its ₹3,872.04 crore obligation as guarantor for Vidarbha Industries Power, releasing all corporate guarantees and obligations related to the debt.
- Zero Debt: The company is now free of debt from banks and financial institutions. As of Q1 FY25, the company’s consolidated net worth stands at ₹11,155 crore.
- Shares Surge: Following the announcement, Reliance Power shares were trading at ₹32.97 on the NSE, reflecting a 5% increase.
Also Read: NSE Sets November 2 as Record Date for 4:1 Bonus Share Issue
Resolution with CFM Asset Reconstruction
Reliance Power announced that it has settled all disputes with CFM Asset Reconstruction, with 100% of Vidarbha Industries Power’s (VIPL) shares pledged in favor of CFM. Both Reliance Power and CFM have agreed to withdraw all legal proceedings initiated against each other, including those under the Insolvency and Bankruptcy Code.
SEBI Ban on Anil Ambani
On August 22, the Securities and Exchange Board of India (SEBI) imposed a ₹25 crore penalty on Anil Ambani and banned him from the securities market for five years. However, Reliance Power clarified that the SEBI order does not affect the company’s operations or governance.
- Clarification from Reliance Power: The company noted that it was not a party to SEBI’s proceedings, and no directions were issued against Reliance Power. Additionally, Anil Ambani had already resigned from the board of Reliance Power in February 2022.
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