Anil Ambani-led Reliance Power share price hits 5% upper circuit, what's driving the rally?
Reliance Power's stocks surged by 5% on March 20, hitting a peak of ₹23.83 on the BSE. This uptick follows reports of the Anil Ambani-led company successfully clearing debts owed to three major banks - ICICI Bank, Axis Bank, and DBS Bank - the previous week. According to The Economic Times report, Reliance Power's parent company Reliance Infrastructure is actively engaged in resolving outstanding dues totaling ₹2,100 crore to JC Flowers Asset Reconstruction Company.
Also read: Bull run ends here, massive correction on cards! Phillip Capital sees Nifty 50 falling 15% to 18,550 "Reliance Power aims to be a debt-free company by the end of this fiscal year. The only debt on its books will be the working capital loan from IDBI Bank," a senior executive was quoted as saying by ET. Together, the three lenders possessed approximately ₹400 crore and have successfully retrieved nearly 30-35% of their initial loan amounts, it added.
According to a notice sent to the exchanges on January 7, Reliance Infrastructure and JC Flowers ARC have engaged in a standstill agreement until March 20, 2024, subsequently extended to March 31, 2024. Under this agreement, JC Flowers ARC has agreed not to pursue legal action against Reliance Infrastructure until March 31. Reliance Power secured ₹240 crore in equity from VFSI Holdings on March 13.
As per sources, these funds likely went towards clearing bank liabilities, as stated by a banker familiar with the matter. VFSI Holdings operates as a subsidiary under Varde Partners, a renowned global asset management firm. Also read: Tata chemicals share price down 8%: Tata group stocks volatile: Should you Sell or Hold the stocks? Reliance Power earlier indicated that its total financial indebtedness was
. Read more on livemint.com
