Under Rs 50: Reliance Group Company Prepays Rs 485 Crore Obligation to Singapore-based Varde Partners, Debt-Free from Banks – Stock Hits Circuit Today!

Rakesh Deshmukh
Under Rs 50: Reliance Group Company Prepays Rs 485 Crore Obligation to Singapore-based Varde Partners, Debt-Free from Banks – Stock Hits Circuit Today!

The shares of the company have delivered a return of over 110 per cent to its shareholders.

Reliance Power Ltd 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 resulting hitting the upper circuit.

As per the press release, Rosa Power Supply Company Ltd (Rosa Power), a subsidiary of Reliance Power Ltd, has successfully prepaid a loan of Rs 485 crore to Singapore-based Varde Partners, eliminating all its outstanding debt. With this prepayment, Rosa Power has achieved a zero-debt status, having fully settled Rs 1,318 crore in debt ahead of the original schedule. This follows the company’s earlier prepayment of Rs 833 crore in September.

Rosa Power, which operates a 1,200 MW coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh, is now debt-free. This significant strengthening of Rosa Power’s balance sheet, combined with a recent Rs 1,525 crore equity-linked warrants preferential issue, will enable Reliance Power to explore growth opportunities in the rapidly expanding clean and renewable energy sector. The preferential issue is set to increase the company’s net worth from Rs 11,155 crore to over Rs 12,680 crore, positioning Reliance Power for future business expansion. Additionally, the listed entity now has zero bank debt.

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Today, the company’s stock rallied around 5 per cent, hitting the upper circuit. At the start of the trading session, Reliance Power Ltd opened at Rs 44.45 per share, compared to the previous day's closing of Rs 43.47 per share on the BSE. Finally, shares closed at Rs 43.65 per share on the BSE. The current market capitalization of Reliance Power Ltd stands at Rs 17,534.08 crore, and the stock has generated an impressive return of over 110 per cent in the past year. 

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 and 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.

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