Reliance Power Ltd's shares hit their five percent upper circuit on September 18 after the company said that it has settled its entire Rs 3,872 crore obligation as guarantor for Vidarbha Industries Power.
The company’s obligations as a guarantor on behalf of Vidarbha Industries Power have been fully settled, resulting in the release and discharge of the corporate guarantee, undertakings, and all obligations related to the outstanding debt of Rs 3,872.04 crore.
Reliance Power has settled all disputes with CFM Asset Reconstruction. 100 percent shares of VIPL have been pledged in favour of CFM against the release and discharge of Corporate Guarantee given by Reliance Power.
At 9.15 am, Reliance Power shares were quoting Rs 32.97 on the NSE, higher by five percent compared to the previous session's closing price.
Reliance Power also announced it has zero debt from banks and financial institutions. The firm's company’s consolidated net worth stood at Rs 11,155 crore, as of the end of the first quarter in FY25.
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Reliance Power, Rosa Power Supply Company and VIPL to withdraw all proceedings initiated by them against CFM. Further, CFM to withdraw all proceedings initiated by it against Reliance Power and Rosa Power Supply Company, including those under the the Insolvency and Bankruptcy Code.
On August 22, market regulator Securities and Exchange Board of India (SEBI) banned promoter Anil Ambani from the securities market for five years.
The Securities and Exchange Board of India (SEBI) imposed a Rs 25 crore penalty on Anil Ambani and banned him from any association with the securities market, including roles as a director or key managerial personnel (KMP) in listed companies or intermediaries registered with the regulator, for five years.
Reliance Power had issued a clarification about the regulator's order.
"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 February 11, 2022, passed by SEBI in the same proceedings," it said.
Therefore, "the order dated August 22, 2024 passed by the SEBI has no bearing whatsoever on the business and affairs of Reliance Power Ltd," the company added.
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