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Synopsis: Reliance Power shares surged after its subsidiary, Rosa Power, prepaid Rs485 crore to Varde Partners, achieving zero debt status with a total repayment of Rs1,318 crore. This move strengthens its financial standing, supporting growth in renewable energy. The company's stock gained 5% and has risen 81.5% this year.
Reliance Power Ltd shares gained traction on Thursday as the company’s subsidiary, Rosa Power Supply Company, reached a zero-debt milestone. By prepaying Rs485 crore to Singapore-based lender Varde Partners, Rosa Power has now settled a total outstanding debt of Rs1,318 crore, well before the scheduled due date. This move, reported in a post-market BSE filing, aligns with Reliance Power's efforts to solidify its financial position.
Reliance Power shares ended Wednesday at Rs43.47, reflecting a 5% uptick for the day. The stock has demonstrated robust performance throughout 2024, achieving an 81.5% gain this year and 110% growth over the past twelve months, underscoring investor confidence. Despite a 10% dip over the past month, the company continues to outpace the BSE Power index, which saw a modest 2% decline.
Rosa Power, which operates a 1,200 MW thermal power plant in Uttar Pradesh, had previously repaid Rs833 crore to Varde Partners, completing its loan settlement obligations. This debt-free achievement not only enhances Rosa Power’s balance sheet but also reinforces Reliance Power's financial foundation, particularly as it pursues new ventures in the clean and renewable energy sectors. The recent issuance of Rs1,525 crore in equity-linked warrants is set to increase Reliance Power’s net worth from Rs11,155 crore to over Rs12,680 crore, further bolstering its financial resilience.
Additionally, Reliance Power reported that Vidarbha Industries Power Limited (VIPL) is no longer a subsidiary, as all outstanding debt obligations and corporate guarantees, totaling Rs3,872 crore, have been fully settled.
For the June quarter, the company reduced its consolidated losses to Rs97.85 crore, a significant improvement from Rs296.31 crore in losses reported in the same period the previous year. Reliance Power's board will meet on November 12 to discuss the unaudited financial results for the quarter and half-year ending September 30, a report that will likely provide further insights into the company's financial trajectory.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. Please consult with a qualified financial advisor before making any investment decisions.
