Reliance Power shares lock in 5% upper circuit on bourses: Here is why

Reliance Power had announced that it has settled its obligations of Rs 3,872.04 crore towards the corporate guarantee of the lenders of Vidarbha Industries

Reliance Power shares zoom: Shares of Anil Ambani-led Reliance Power rallied northward to get locked in the 5 per cent upper circuit of Rs 32.98 on the BSE during the intra-day deals on Wednesday. Nearly a total of 126.24 lakh equity shares of Reliance Power worth around Rs 126.24 crore exchanged hands on the BSE and NSE. The trading of the stock has been halted for the day.

The uptick in the stock price follows the news that Vidarbha Industries Power (VIPL) ceased to be a subsidiary of Reliance Power, and the entire obligations of the company as a guarantor on behalf of VIPL stand fully settled, resulting in the release and discharge of the corporate guarantee.

 

Earlier, on Tuesday, September 17, Reliance Power had said that it has settled its obligations of Rs 3,872.04 crore towards the corporate guarantee of the lenders of Vidarbha Industries.

Reliance Power, in the regulatory filings, also said that it has settled all disputes with CFM Asset Reconstruction (CFM). "100 per cent shares of VIPL have been pledged in favour of CFM against the release and discharge of the corporate guarantee given by Reliance Power," the company said in the regulatory filing.

Reliance Power, a part of the Reliance Group, is one of the leading private sector power generation and coal resources companies in India. The company has one of the largest portfolios of power projects in the private sector, based on coal, gas, hydro, and renewable energy, with a commissioned portfolio of 5,300 megawatts.

As of September 18, 2024, Reliance Power commands a market capitalisation of Rs 13,247.97 crore on the BSE. The company is a constituent of the BSE Smallcap index.

Reliance Power shares have jumped nearly 11 per cent in the last five days, 42 per cent in the last six months, and 37 per cent year to date.