Khushi Bhuta, Pune
The shares of Reliance Power Ltd. have hit upper circuit as the company settled Rs. 3,872 crore of debt due to being a guarantor for Vidarbha Industries Power (VIPL). The company has also achieved a debt free status after settling the obligation.
VIPL had an outstanding debt of Rs. 3,872 crore that has been paid off by Reliance Power Ltd. releasing them of their status as a corporate guarantor along with all undertakings and obligations related to the debt. Reliance Power Ltd. has settled all of their debt obligations and disputes with CFM Asset Reconstruction. All of VIPL’s shares have pledged to CFM in exchange for freeing Reliance Power of their guarantor position.
As of 9.15am on 18th September, Reliance Power’s shares hit upper circuit at a quoted price of Rs. 32.97 on National Stock Exchange (NSE). This is a 5% hike from the company’s previous price. At the end of the first quarter of Financial Year 2025, the net worth of Reliance Power was valued at Rs. 11,155 crore.
The Security and Exchange Board of India (SEBI) had banned Anil Ambani from his position as a promoter in the securities market for a timespan of five years on the 22nd of August, 2024. SEBI had furthermore fined Anil Ambani with a penalty of Rs. 25 crore. They had moreover banned him from his position as a director or any key managerial personnel in any listed company or intermediary registered with them for a timespan of five years.
In response to this, Reliance Power had issued a clarification stating, “Reliance Power was not a notice or party to the proceedings before Sebi in which the Order is passed. No directions are given in the Order against Reliance Power. Anil Ambani had resigned from the board of directors of Reliance Power pursuant to the interim order dated February 11, 2022, passed by SEBI in the same proceedings.” They had also further clarified that “the order dated August 22, 2024 passed by the SEBI has no bearing whatsoever on the business and affairs of Reliance Power Ltd.”
CFM will now withdraw all of its proceedings against Reliance Power and Rosa Power Supply Company. These include the application of Bankruptcy and Insolvency codes.