Reliance Infra gains after paring debts to Rs 475 crore

Reliance Infrastructure rallied 5.90% to Rs 249.55 after the company announced significant progress in settling its outstanding debts from Rs 3,831 crore to Rs 475 crore.

The company reported that Invent Assets Securitisation and Reconstruction (Invent ARC), one of its lenders, has novated certain charged securities to recover its dues. As a result, Invent ARC's entire fund based outstanding amount has been reduced to Zero.

As part of its debt resolution strategy, the company has cleared its funded outstanding dues to Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction Company, ICICI Bank, Union Bank, and other lenders. The companys external debt liability is reduced to Rs 475 crore. Consequently, the net worth of the company will stand at around Rs 9,041 crore.

 

Additionally, the company has completed a One-Time Settlement (OTS) with LIC, resolving its obligations related to non-convertible debentures for Rs 600 crore. The company also settled its obligations with Edelweiss for Rs 235 crore concerning similar instruments.

In another development, Reliance Infrastructure resolved disputes with Adani Electricity Mumbai (AEML) and Adani Energy Solutions (AESL) regarding the share purchase agreement dated 21 December 2017 relating to transfer of Mumbai Power Business. Each party to the dispute has waived the respective claims against the other. As the claims and counterclaims are contingent, there is no impact on the financial position of the company.

Reliance-Infra is an infrastructure company, developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads, metro rail and airport in the infrastructure space and in the defence sector.

On a consolidated basis, the company reported net loss of Rs 233.74 crore in Q1 FY25 as against net loss of Rs 672.86 crore in Q1 FY24. Net sales jumped 29.3% to Rs 7,192.83 crore in June 2024 quarter.

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