Reliance Power BSE Share Price Today Boosted by Rosa Power’s Debt Prepayment
The Financial Landscape of Reliance Power
Reliance Power Ltd's subsidiary, Rosa Power, has made a pivotal move by prepaying ₹850 crore of its debt to Singapore-based lender Varde Partners. This strategic choice follows Reliance Power's remarkable achievement of zero debt, positioning Rosa Power on the pathway to becoming completely debt-free.
A Bright Future Ahead
The company is enthusiastic about settling its remaining debt in the next quarter, aiming to complete this process before the end of the financial year. Rosa Power operates a 1,200 MW coal-based thermal power plant located in Rosa village near Shahjahanpur, Uttar Pradesh.
Business Expansion through Preferential Issue
- Strengthening of Balance Sheet: Rosa Power's financial health will be bolstered by a recent ₹1,525-crore preferential issue, enabling Reliance Power to explore new business opportunities, especially in renewable energy.
- Investor Support: The preferential issue was approved by Reliance Power's board, with ₹600 crore from its promoter company, Reliance Infrastructure, and ₹900 crore from Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.
- The results are expected to enhance Reliance Power's net worth from ₹11,155 crore to over ₹12,680 crore, maintaining its renown zero-bank-debt status.
Background on Debt Reduction
Recently, the Anil Ambani-owned power firm resolved a massive ₹3,872.04 crore obligation linked to Vidarbha Industries Power Ltd, achieving a historic zero debt status with banks and financial institutions.
Reliance Infrastructure also made headlines, reducing its external debt from ₹3,831 crore to ₹475 crore through novation of securities and settling dues with numerous lenders.
Interestingly, Reliance Power has revealed plans for Reliance Infrastructure to increase its equity stake by over ₹600 crore as part of the announced preferential issue, aiming to support business expansion and joint ventures.
The Market Response
In reaction to these developments, shares of Reliance Power Ltd concluded trading at ₹42.06, gaining ₹2 or 4.99% on the BSE.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.