Anil Ambani-led Reliance Power shares hit 5% upper circuit: What's happening?
Reliance Power Share price: It was reported that the Anil Ambani-led company settled debts owed to three banks - ICICI Bank, Axis Bank, and DBS Bank.
Shares of Reliance Power rose 5% today (March 20) and reached day's high of ₹23.83 on the BSE. This comes after it was reported that the Anil Ambani-led company settled debts owed to three banks - ICICI Bank, Axis Bank, and DBS Bank - last week. The reports also claimed that its parent Reliance Infrastructure is working towards settling dues of ₹2,100 crore to JC Flowers Asset Reconstruction Company.
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What reports claimed on Reliance Power?
The Economic Times reported quoting a senior executive from a commercial bank as saying, “Reliance Power aims to be a debt-free company by the end of this fiscal year. The only debt on its books will be the working capital loan from IDBI Bank.” Another lender said as per the outlet that three lenders jointly had about ₹400 crore and recovered close to 30-35% of their principal loans.
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As per a notice issued to the exchanges on January 7, Reliance Infrastructure and JC Flowers ARC entered into a standstill agreement until March 20, 2024 which was later extended to March 31, 2024 as per which JC Flowers ARC will not take legal action against Reliance Infrastructure until March 31.
Reliance Power financials
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Reliance Power disclosed earlier that as of December 31, 2023, its total financial indebtedness stood at ₹765 crore while Reliance Infrastructure stated its total financial indebtedness was ₹4,233 crore for the same period. As per earlier disclosures, Reliance Power settled loans with two lenders- JC Flowers ARC and Canara Bank- in April 2023.