Shares of Reliance Power Ltd were locked at a 5% upper circuit on 18 September after the company announced that it had completed its entire Rs 3,872 crore obligations as a guarantor for Vidarbha Industries Power. 

The company’s obligations as a guarantor for Vidarbha Industries Power has been fully settled, causing the release and discharge of the corporate guarantee, undertakings, and all obligations in regards to the outstanding debt of Rs 3,872.04 crore. 

All disputes between Reliance Power and CFM Asset Reconstruction have been resolved. A 100% pledge of VIPL shares has been made in support of CFM as collateral for the release and discharge of Reliance Power’s corporate guarantee.

The company has also announced that they have achieved zero debt from financial institutions and banks. At the end of the first quarter of FY25, the company’s consolidated net worth stands at Rs 11,155 crore. 

Reliance Power, Rosa Power Supply Company, and VIPL have agreed to withdraw all legal proceedings initiated against CFM. In return, CFM will also retract its proceedings against Reliance Power and Rosa Power Supply Company, including those filed under the Insolvency and Bankruptcy Code. This resolution aims to settle all disputes between the entities.

Promoter Anil Ambani was barred from the securities market by the Securities and Exchange Board of India (SEBI) on 22 August, with a five-year suspension.

Anil Ambani was fined Rs. 25 crore by the Securities and Exchange Board of India (SEBI), and he was prohibited from having any contact with the securities sector for a period of five years. This includes working as a director or as a key managerial personnel (KMP) for listed businesses or regulatory-registered intermediaries.

Reliance Power has responded to the regulator’s decision with an explanation.

The company said, “Reliance Power was not a notice or party to the proceedings before Sebi in which the Order is passed. No directions are given in the Order against Reliance Power. Anil Ambani had resigned from the board of directors of Reliance Power pursuant to the interim order dated 11 February, 2022, passed by SEBI in the same proceedings.”

The company added. “The order dated 22 August, 2024 passed by the SEBI has no bearing whatsoever on the business and affairs of Reliance Power Ltd.”

At 11:24 am, the shares of Reliance Power were locked 5% higher at Rs 32.97 on NSE.

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