This power stock has jumped 23% in one week; share price hit a low of ₹1 in March 2020

Last week, Reliance Power settled ₹3,872 crore guarantor obligations for its subsidiary Vidarbha Industries Power.

The firm said it has settled all disputes with CFM Asset Reconstruction (CFM). "100% shares of VIPL have been pledged in favour of CFM against the release and discharge of corporate guarantee given by Reliance Power."

According to the terms of the settlement agreement, Reliance Power, along with its subsidiaries Rosa Power Supply Company, VIPL, and CFM Asset Reconstruction, have formalised a pact to settle the outstanding debt.

Thereafter, the release deed was executed, and Reliance Power and its subsidiaries, Rosa and VIPL, will withdraw all proceedings initiated by them against CFM.

CFM would also withdraw all proceedings initiated by it against Reliance Power and Rosa, which included an insolvency application.

A pledge of balance 92.60% shareholding of VIPL in favour of Axis Trustee Services has been created.

Following the settlement, "the net worth of Reliance Power is ₹1,155 crore as of June 30, 2024, on a consolidated basis," the firm added.

Earlier, on September 16, Reliance Power announced it had secured a battery storage contract of 500 MW through the e-reverse auction (eRA) conducted by the Solar Energy Corporation of India (SECI).

The auction, held on September 11, 2024, is part of SECI's initiative to enhance energy storage capabilities across the country.

The contract involves the installation of a total of 1,000 MW of standalone BESS units, awarded on a build-own-operate (BOO) model for "on demand" usage under a tariff-based competitive bidding process.

About Reliance Power

Reliance Power is a part of the Reliance Anil Dhirubhai Ambani Group. It is one of India's leading private sector power generation and coal resources companies.

The company, along with its subsidiaries, is primarily engaged in the business of generation of power. Reliance Power was incorporated on January 17, 1995. 

Reliance Power stock performance

Shares of the company are currently trading much below its all-time high level of ₹374.94, hit on February 11, 2008. The stock hit an all-time low of ₹1 on March 26, 2020.