Ahead of its quarterly results, Reliance Power Ltd is in focus today after a subsidiary Rosa Power Supply Company Limited (Rosa Power), prepaid Rs 485 crore loan to Singapore-based lender Varde Partners.
By prepaying this loan, Rosa Power, has achieved a zero-debt status, fully settling its outstanding debt by payment of Rs 1,318 crore to Varde ahead of the original schedule, Reliance Power said in a BSE filing.
The filing came out post market hours of Wednesday. Reliance Power shares settled at Rs 43.47 for the day, up 5 per cent. The scrip has rallied 81.50 per cent in 2024 so far and 110 per cent in the past one year.
The Reliance Power board will be meeting on Tuesday, November 12, to consider and approve the unaudited financial results for the quarter and half year ended September 30.
The stock is down 10 per cent in the past one month against a 2 per cent drop in the BSE Power index.
To recall, Rosa Power had earlier in prepaid Rs 833 crore to Varde Partners. Rosa Power, operates a 1,200 MW coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh.
"The strengthening of Rosa Power’s balance sheet, along with a recent Rs 1,525 crore equity linked warrants preferential issue, will support Reliance Power in pursuing business opportunities, in the fast-growing clean green renewable energy sector," Reliance Power said.
The preferential issue, the Anil Ambani-led company said would boost its net worth from Rs 11,155 crore to over Rs 12,680 crore. The listed entity has zero bank debt, it noted.
Recently, Reliance Power said Vidarbha Industries Power Limited (VIPL) has ceased to be a subsidiary and the entire obligations of Reliance Power as a guarantor on behalf of VIPL are fully settled now. This had resulted in release and discharge of its corporate guarantee, undertakings and all obligations and claims in relation to the outstanding debt of VIPL, amounting to Rs 3,872.04 crore.
For the June quarter, Reliance Power reported a consolidated loss of Rs 97.85, on account of improved income. The Anil Ambani company had reported a loss of Rs 296.31 crore in the June period of last year. Reliance Power deals in power projects in the private sector, based on coal, gas, hydro and renewable energy, with commissioned portfolio of 5,300 megawatts.