Reliance Group-Backed Power Stock Under Rs 50 In Green As Making A Bullet Payment of USD 150 Million to IIFCL, UK
The stock gave multibagger returns of 141 per cent from its 52-week low of Rs 19.37 per share.
Sasan Power Limited, a subsidiary of Reliance Power, has successfully repaid a significant debt obligation of US$150 million to IIFCL, UK. This substantial bullet payment marks a crucial step in strengthening Sasan Power's financial position. By fulfilling this debt obligation, the company enhances its debt coverage ratios, improves its liquidity, and positions itself for a stronger credit rating. This positive financial development comes as Sasan Power operates the world's largest integrated coal-based power plant, boasting an impressive 3,960 MW capacity and a captive coal mining capacity of 20 MTPA. This strategically located plant serves a vast consumer base of over 40 crore people across seven states, supplying electricity at an exceptionally low tariff of Rs 1.54 per unit.
The timely repayment of this loan significantly strengthens Reliance Power's overall balance sheet. This move aligns with the company's strategic shift towards renewable energy sources, a sector poised for substantial growth in the coming years. Notably, Reliance Power recently achieved a zero-debt status and further bolstered its financial position through a successful equity-linked warrant issuance, raising Rs 1,525 crore. This capital infusion will provide the necessary resources to capitalize on the burgeoning opportunities within the renewable energy market.
With a substantial existing net worth of Rs 14,393 crore, this successful equity issuance will further elevate Reliance Power's net worth to over Rs 15,000 crore. This enhanced equity base provides a strong foundation for the company's future growth trajectory, enabling it to pursue strategic investments and expand its operations within the rapidly evolving renewable energy landscape.
Earlier, Reliance NU Suntech, a subsidiary of Reliance Power Limited, recently secured a significant 930 MW solar energy contract with a battery energy storage system (BESS) from Solar Energy Corporation of India (SECI) in a December 2024 e-reverse auction. This landmark project, awarded at a competitive tariff of Rs 3.53/kWh, required Reliance NU Suntech to install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power. The company emerged as the largest individual winner among five contenders, demonstrating the growing cost-effectiveness and technological advancement of solar power with BESS in India.
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About Reliance Power Ltd
Reliance Power Limited, part of the Reliance Group, is one of India's leading private-sector power generation companies. The company has an operating portfolio of 5,300 megawatts, which includes 3960 megawatts Sasan Power Limited (the world's largest integrated coal-based power plant). For the past seven years, Sasan Power has consistently ranked as the best operating power plant in India.
On Thursday, shares of Reliance Power Ltd surged 4.52 per cent to an intraday high of Rs 46.70 per share from its previous closing of Rs 44.68 per share with a 1.50 times spurt in volume. The company has a market cap of Rs 18,530 crore. The stock gave multibagger returns of 141 per cent from its 52-week low of Rs 19.37 per share. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.