Anil Ambani's Reliance Power settles debt worth Rs 3,872 crore, achieves debt-free status; shares hit upper circuit

Reliance Infrastructure and Reliance Power shares surged on Wednesday following key announcements from Anil Ambani’s Reliance Group regarding substantial debt repayments. Reliance Power successfully settled its entire financial obligation as a guarantor for Vidarbha Industries Power Ltd (VIPL), while Reliance Infrastructure reduced its fund-based outstanding dues to Invent ARC to zero.

Reliance Power cleared a liability of Rs 3,872.04 crore, fulfilling its corporate guarantee commitment to VIPL’s lenders and resolving disputes with CFM Asset Reconstruction Pvt Ltd.

In a statement, Reliance Power mentioned, "All disputes with CFM Asset Reconstruction Private Limited (CFM) have been settled. 100 per cent shares of VIPL have been pledged in favour of CFM, leading to the release and discharge of the corporate guarantee given by Reliance Power."

This resolution resulted in the release of all corporate guarantees, undertakings, and claims related to VIPL’s outstanding debt of Rs 3,872.04 crore.

In addition, Reliance Power has successfully reduced its debt to zero from banks and financial institutions, while Reliance Infrastructure lowered its external debt to Rs 475 crore from Rs 3,831 crore.

According to the companies, Reliance Infrastructure now has a net worth of Rs 9,041 crore, while Reliance Power stands at Rs 11,155 crore.

Reliance Infrastructure also stated that Invent Assets Securitisation and Reconstruction Pvt Ltd had transferred certain securities to recover its dues, thereby clearing all fund-based outstanding dues to Invent ARC.

This is a notable achievement for Reliance Infrastructure, which has already repaid dues to various entities, including Life Insurance Corporation (LIC), Edelweiss Asset Reconstruction Company Ltd, ICICI Bank, and Union Bank.

Headquartered in Mumbai, Reliance Infrastructure is involved in engineering, procurement, and construction (EPC) services, as well as power distribution in Delhi. The company also manages several defense and infrastructure projects across India.