In a major relief to Anil Ambani, as his company Reliance Power settles Rs 3872 crore loan; and became ‘zero debt’ status firm. Shares jumped by 5% after the announcement was made.
Anil Ambani’s company Reliance Power, while sharing information in its stock exchange filing on Tuesday, said that it is in ‘zero debt’ status. It no longer has any debt from banks and financial institutions and as of June 30, his total assets were Rs 11,155 crore.
Reliance Power also announced that Vidarbha Industries Power Limited (VIPL) is no longer a subsidiary and its obligations as a guarantor for VIPL have been fully settled.
Reliance Power Stock Jumps
As of 11:02 AM on September 18, Reliance Power’s shares were trading at Rs 32.98, a 5% increase from the previous closing price. Meanwhile, the Sensex is trading at 83,226.09, up by 0.18%. During the day, the stock has hit both a high and low of Rs 32.98. On the technical front, Reliance Power’s shares are trading above short-term simple moving averages (5, 10, 20 days) and long-term moving averages (50, 100, and 300 days).
Reliance Power Share: Rs. 1 Lakh Become Now Rs. 10 Lakh
Reliance Power has become a multibagger stock under Anil Ambani’s portfolio, delivering an impressive return of 959.31% over the past five years. On September 20, 2019, the price of a single Reliance Power share was just Rs 2.90. Now, it has crossed Rs 31. To put this into perspective, if an investor had invested Rs 1 lakh in Reliance Power stock on September 20, 2019, their investment would now be worth Rs 10,59,000.
Read More: Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On September 18
Reliance Power Zero Debt Firm
This move has resulted in the release and discharge of Reliance Power’s corporate guarantee, undertakings, and claims related to VIPL’s outstanding debt, totaling Rs 3,872.04 crore. Reliance Power also revealed that it has settled all disputes with CFM Asset Reconstruction Private Limited (CFM). In the agreement, 100% of VIPL’s shares were pledged to CFM in exchange for the release and discharge of the corporate guarantee previously given by Reliance Power. As part of this settlement, both Rosa and VIPL will withdraw all legal proceedings against CFM, and CFM will do the same against Reliance Power and Rosa.
(Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.)
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