Reliance Power subsidiary Rosa Power has prepaid its Rs 850 crore debt to Singapore-based lender Varde Partners. Anil Ambani-owned Reliance Power had recently announced that it has become debt free.
Following the latest payment, Rosa Power is also said to be on the path to become debt free. It operates a 1200 Mega Watt (MW) coal-based thermal power plant in Rosa Village near Shahjahanpur, Uttar Pradesh. The company has only borrowed from Varde Partners.
As per its plans, it aims to settle its entire debt in the current financial year with another payment scheduled in the next quarter.
For the unversed, Reliance Power also announced a Rs 1,525 crore preferential shares issue this week to aide its expansion and explore new business areas. The company is eyeing to tap the momentum in the renewable energy market through special purpose vehicles and subsidiaries. Reliance Infrastructure, Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services will participate in its share issue.
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Investors at the bourses have liked the recent announcements from the company due to which its share price has surged by over 21 per cent in the last five trading sessions. Its shares hit the five per cent upper circuit on Wednesday owing to the bid for expansion and debt reduction.
Rosa Power's recent move is also expected to strengthen the balance sheet of Reliance Power. The net worth of Reliance Power will surge to Rs 12,680 crore from Rs 11,155 crore post preferential issue.
The firm also announced last week the settlement of guarantees worth Rs 3,872 crore related to Vidarbha Industries Power Ltd (VIPL).
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The flagship company of Anil Ambani group, Reliance Infrastructure, has also announced a Rs 6,000 crore fundraise.
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