Reliance Power settles Rs 3,872 crore in obligations, achieves debt-free tag

According to reports, this settlement has led to the release of all corporate guarantees, undertakings, and obligations associated with the outstanding debt of Rs 3,872.04 crore.

The company confirmed that all disputes with CFM Asset Reconstruction have been resolved.

As part of the settlement, 100 percent of VIPL’s shares have been pledged to CFM in exchange for releasing Reliance Power from its corporate guarantee commitments.

In the early trade on Wednesday, Reliance Power's shares were trading at Rs 32.97 on the NSE, up by 5 percent from the previous session's close.

The company also declared that it is now debt-free with respect to banks and financial institutions.

Reliance Power's consolidated net worth stood at Rs 11,155 crore at the end of the first quarter of FY25.

Reliance Power, along with its subsidiaries Rosa Power Supply Company and VIPL, has agreed to withdraw all legal proceedings against CFM, and in turn, Moneycontrol reported.

CFM will withdraw its actions against Reliance Power and Rosa Power Supply Company, including those under the Insolvency and Bankruptcy Code, as per reports.

Additionally, on August 22, the Securities and Exchange Board of India (SEBI) banned Reliance Power’s promoter, Anil Ambani, from the securities market for five years, imposing a penalty of Rs 25 crore.

This ban prevents him from serving in any capacity as a director or key managerial personnel (KMP) in listed companies or intermediaries registered with SEBI, the Indian equity market regulator.

In response to this, Reliance Power issued a clarification, stating that it was not involved in SEBI's proceedings and that no directives were issued against the company.

Anil Ambani had already resigned from the board of Reliance Power following SEBI’s interim order dated February 11, 2022.

Therefore, the SEBI order dated August 22, 2024, has no impact on Reliance Power's business or operations, the company asserted.