Shares of Reliance Power Ltd are in focus on Monday morning after the company informed stock exchanges BSE and NSE that its subsidiary Rosa Power Supply Company has executed the definitive documents on December 27 to avail the rupee term loan facility to the extent of Rs 3,760 crore in one or more tranches, from Power Finance Corporation Ltd (PFC), subject to satisfaction of customary conditions precedent.
The Anil Ambani-led company has an operating portfolio of 5,300 megawatts. It said the proceeds of the loan would be utilised for general corporate purposes including future investment of the group in renewable energy projects and flue gas desulfurization capex of Rosa.
"PFC does not hold any share in the company and is neither a related party nor part of the Promoter/Promoter Group/Group Companies. The aforesaid borrowing from PFC is not a related party transaction and have been done on arm’s length basis," it said.
Last month, Rosa Power Supply Company prepaid Rs 485 crore loan to Singapore-based lender Varde Partners. By prepaying that loan, it achieved a zero-debt status, fully settling its outstanding debt by payment of Rs 1,318 crore to Varde, ahead of the original schedule.
Earlier this year, Reliance Power said it was zero bank debt on a standalone basis and said it was looking to venture into new horizons of growth, including the renewable energy sector -- directly and/or through its special purpose vehicles and subsidiaries.
In order to augment long term resources, enhancing networth and financial position, reduction of existing debt, ensuring long term viability and growth and expansion including to meet long-term working capital requirement and for general corporate purposes, it proposed to issue fresh capital into the company.
For this, it announced a preferential issue of 46.2 crore equity shares worth Rs 1,524.60 crore in October to promoter Reliance Infrastructure Ltd and non-promoter entities Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd (Sanjay Kothari and Meenakshi Sanjay Kothari.
The recent developments lifted Reliance Power shares 81 per cent for 2024 so far. Reliance Power subsidiary Reliance NU Suntech this month received a letter of award from Solar Energy Corporation of India (SECI) for its proposed Solar 930 MW and 465 MW/1860 MWh Battery Energy Storage System (BESS) projects. The project will see the largest deployment of grid storage batteries at a single site in Asia, besides China.