Reliance Infrastructure and Reliance Power shares soared on Wednesday as the Reliance Group, led by top industrialist Anil Ambani, announced major debt repayment milestones. Reliance Power fulfilled its whole payment commitment as a guarantee on behalf of Vidarbha Industries Power Ltd (VIPL), and Reliance Infrastructure reduced the total fund-based outstanding amount payable to Invent ARC to zero.
Reliance Infrastructure (RELINFRA) shares soared by up to Rs 18.8, or 8.0 percent, to Rs 254.4 each, while Reliance Power stock rose by up to Re 1.6, or 5.0 percent, to Rs 33 on the BSE during the session, as investors praised the businesses' efforts.
Reliance Power paid Rs 3,872.04 crore in corporate guarantees to VIPL's lenders and resolved all concerns with CFM Asset Reconstruction Pvt Ltd.
"Reliance Power has resolved all disputes with CFM Asset Reconstruction Private Limited (CFM)." "100% of VIPL shares have been pledged in favor of CFM against the release and discharge of Reliance Power's Corporate Guarantee," it stated.
According to the business, the move resulted in the "release and discharge of Corporate Guarantee, Undertakings, and all obligations and claims thereunder in relation to VIPL's outstanding debt amounting to Rs 3872.04 crore".
Reliance Power paid off its obligation to banks and other financial institutions, while Reliance Infrastructure reduced its external debt exposure to Rs 475 crore from Rs 3,831 crore.
The net value of Reliance Infrastructure was Rs 9,041 crore, while that of Reliance Power was Rs 11,155 crore, according to the corporations.
Reliance Infrastructure stated that Invent Assets Securitisation and Reconstruction Pvt Ltd has novated some charged securities to collect its dues, reducing its total fund-based outstanding dues to Invent ARC to zero.
This development is significant since Reliance Infrastructure has already paid its outstanding financed dues to various corporations, including Life Insurance Corporation (LIC), Edelweiss Asset Reconstruction Company Ltd, ICICI Bank, and Union Bank.
Reliance Infrastructure provides engineering, procurement, and construction (EPC) services. It also engages in enterprises such as electricity distribution in the national capital, as well as the execution, management, and maintenance of a number of defense and infrastructure projects.
Reliance Electricity is a major private-sector electricity-producing and coal resource firm. It has one of the most extensive portfolios of power projects in the country's private sector.
