Reliance Power Ltd. shares surged 3% as it recently announced that two of its subsidiaries, Kalai Power Pvt Ltd and Reliance Cleangen Ltd, have successfully settled a debt worth Rs 1,023 crore with Reliance Commercial Finance Ltd (RCFL), a subsidiary of Authum Investment & Infrastructure Limited, a regulatory filing said.

Reliance Power had recently sold its 45 MW wind power project in Maharashtra to JSW Renewable Energy for Rs 132 crore, and the funds raised from the sale of these assets were utilised to retire the debt. Similarly, in December 2023, Kalai Power sold the development rights of its proposed 1,200 Megawatt hydroelectric project in Arunachal Pradesh to THDC India Ltd for Rs 128 crore.

Authum Investment acquired Reliance Commercial Finance and Reliance Home Finance from Reliance Capital Ltd in 2022. Over the past few months, Reliance Power has been actively signing debt settlement agreements with various banks, including DBS Bank, ICICI Bank, and Axis Bank, as it strives to become a debt-free company on a standalone basis by the end of March 31, 2024. As of the end of fiscal year 2023, the company had an outstanding debt of approximately Rs 700 crore.

This development is in line with Reliance Power’s ongoing efforts to reduce its debt and streamline its financial operations. By strategically utilising assets and settling outstanding debts, the company is taking concrete steps towards achieving its goal of becoming a debt-free entity.

At 3:30 pm, the shares of Reliance Power closed 2.17% higher at Rs 28.25 on NSE.