Reliance Power shares soar 8% on Wednesday, reports indicate firm repaid around ₹800 crore to banks

According to the reports, the firm has repaid its debt of around ₹800 crore to banks. The stock has risen nearly 30% since the beginning of the year and has gained over 96% in the last one year.

Reliance Power had non-current borrowings of ₹284.07 crore as of March 31, 2024, and its total non-current liabilities stood at ₹285.29 crore. Its current borrowings stood at ₹3,915.76 crore as of the end of March 2024 while total current liabilities stood at ₹5,112.28 crore.

The company informed the exchanges in a letter dated Tuesday that CFM Asset Reconstruction has filed an application under Section 7 of IBC, 2016, against the company for an alleged claim of ₹3,901.59 crore as of August 17, 2023, towards corporate guarantees given by the firm against the borrowings of Vidarbha Industries Power, a subsidiary of the company.

Reliance Power said it has proposed a one-time settlement to CFM and will take all appropriate steps to protect its interest.

The company reported a consolidated net loss of ₹397 crore during the quarter as against a net profit of ₹231.19 crore in the same period of the previous fiscal. Revenue from operations rose nearly 16% to ₹1996.65 crore during the period.

During the quarter ending on March 31, 2024, the company entered into a business transfer agreement with JSW Renewal Energy (Coated) for the transfer of 45 megawatts (MW) wind farm power project located at Vashpet, Maharashtra on a slump sale basis for a consideration of ₹132.53 crore. The company said it impaired its assets associated with the project of ₹87.75 crore in the statement of profit and loss as an exceptional item.

Reliance Power is part of the Reliance Anil Dhirubhai Ambani Group.