Under Rs 50: Reliance Group Company Settles Rs 3,872 Crore Obligation, Now Debt-Free from Banks and Financial Institutions – Stock Hits Back-to-Back Upper Circuit for 2 Days!

The shares of the company have delivered a return of over 50 per cent to its shareholders.

Tthis Small-Cap company is focused on developing, constructing, and operating power projects both in India and internationally. The company, along with its subsidiaries, has a substantial portfolio of power generation capacity, encompassing both operational projects and those under development. Today the company experienced a significant surge in its share price.

Reliance Power Ltd announced that it has fully settled its obligations as a guarantor on behalf of Vidarbha Industries Power Limited (VIPL), leading to the release and discharge of the Corporate Guarantee, undertakings, and all related obligations and claims. This settlement covers the outstanding debt of VIPL, amounting to Rs 3,872.04 crore. Reliance Power has resolved all disputes with CFM Asset Reconstruction Private Limited (CFM), pledging 100 per cent of VIPL's shares in favour of CFM in exchange for the release and discharge of the Corporate Guarantee provided by Reliance Power.

Today, the company’s stock rallied around 5 per cent, hitting the upper circuit. On the BSE, trading volume saw a significant increase, surging over 6.75 times. At the start of the trading session, Reliance Power Ltd opened at Rs 34.62 per share, compared to the previous day's closing of Rs 32.98 per share on the BSE. Finally, shares closed at Rs 34.62 per share on the BSE.

The current market capitalization of Reliance Power Ltd stands at Rs 13,906.76 crore, and the stock has generated an impressive return of over 50 per cent in the past 6 months. 

Financial Performance

According to the Quarterly Results, in the first quarter of FY25, the company reported a revenue of Rs 1992 crore. The operating profit reached Rs 651 crore, resulting in an operating profit margin of 33 per cent. The net loss for the period amounted to Rs 98 crore.

Reviewing the annual performance it reported a revenue of Rs 7893 crore in FY24, compared to Rs 7514 crore in FY23. The operating profit for FY24 reached Rs 1160 crore while the company reported a loss of Rs 2068 crore.

Investors must keep this small-cap company on their radar.

Disclaimer: The article is for informational purposes only and not investment advice.