Reliance Power shares surge 5% as arm Rosa Power turns zero-debt firm; here's what this means for the firm

With this, Rosa Power has achieved a zero-debt status, fully settling its outstanding debt by payment of ₹1,318 crore to Varde ahead of the original schedule, a company statement said.

In September, Rosa Power had prepaid ₹833 crore to Varde Partners.

Rosa Power operates a 1,200 MW coal-based thermal power plant in Rosa village near Shahjahanpur, Uttar Pradesh.

The strengthening of Rosa Power's balance sheet, along with a recent ₹1,525 crore equity-linked warrant preferential issue, will support Reliance Power in pursuing business opportunities in the fast-growing green energy sector, it stated.

This preferential issue will boost the company's net worth from ₹11,155 crore to over ₹12,680 crore.

A resolution through a postal ballot notice has been passed with the requisite majority, the company said in a late-night stock exchange filing on Wednesday.

On September 23, the board of Reliance Power Ltd approved raising ₹1,524.60 crore through the issue of preferential shares, wherein promoters will infuse ₹600 crore into the company to advance its business.

Reliance Infrastructure, the promoter of the company, will enhance its equity stake by over ₹600 crore. The other investors who will participate in the preferential issue include Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The fresh fund would be utilised for the expansion of business operations directly and/or through investment in subsidiaries and joint ventures, debt reduction, and general corporate purposes, the company said.

In September, Reliance Power announced that 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.

Reliance Power share price

Shares of Reliance Power have rallied 87% on a year-to-date (YTD) basis. Over the past 12 months, the stock has gained over 110%.