Anil Ambani's company Reliance Power's stock is making a splash, upper circuit after this big news
RPower Shares: Anil Ambani's group's Reliance Power has paid the entire liability of Rs 3872 crore as guarantor for Vidarbha Industries Power. According to Reliance Power, now there are no dues to banks and financial institutions. This year in 2024, Reliance Power shares have gained about 42 percent. The one-year low is Rs 15.53 and the high is Rs 38.07.
Shares of Anil Ambani-led companies, the younger brother of Asia's richest man Mukesh Ambani, show signs of a turnaround. Anil Ambani's Reliance Power shares hit the upper circuit for the second consecutive day to reach Rs 32.97 with an upper circuit of 5% today. It has given a return of 42% in the last 6 months and 72% in one year.
In fact, Reliance Power announced on September 17 the resolution of a major debt of Rs 3,872.04 crore pertaining to its erstwhile subsidiary Vidarbha Industries Power Limited which has now turned a zero-debt company. The contribution by VIPL to the consolidated revenue of RPower is, however, a meager 0.11% or Rs 8.73 crore as per the filing on the exchange.
In the financial year ended, VIPL had a negative net worth of Rs 3,086.29 crore. The company will not be a subsidiary of RPower from September 19, 2024, onwards. Its positive will thereby reflect on RPower's balance sheet. Announcing this, thereby saw its shares take a big jump.
Reliance Power is fast expanding its renewable portfolio. On September 11, it secured a contract for a 500 MW / 1,000 MWh Battery Energy Storage System (BESS). The firm has also received an order from Solar Energy Corporation of India (SECI). It had conducted an e-reverse auction (ERA) to expand the country's energy storage capacity.
Reliance Power had bid a tariff of Rs 3.819 lakh per megawatt per month in this auction. The other bidders were Avaada Energy, Acme Cleantech, Gensol and IndiGrid.
