Reliance Power subsidiary Rosa Power prepays Rs 850 crore debt to Varde Partners

Reliance Power shares surged on Wednesday, continuing their winning streak for the 10th session in a row, after its subsidiary Rosa Power was learned to have prepaid its dues of Rs 850 crore owed to Singapore-based Vande Partners. With that, Rosa Power was learned to be on track to becoming debt-free. Varde Partners is the sole lender of Rosa Power. 

The stock of Reliance Power, part of the Reliance Group led by top businessman Anil Ambani, ended with a gain of Rs 2, or 5.0 per cent, at Rs 42.1 apiece on BSE. That brought its overall gains to more than 42 per cent over the last 10 sessions.

The Reliance Power subsidiary aims to settle the remainder of its overall debt in the next quarter, completing the process before the end of the current financial year.

ALSO READ: Reliance Power board approves Rs 1,525 crore preferential issue

Rosa Power operates a 1,200 MW coal-based thermal power plant in the Rosa village near Shahjahanpur in Uttar Pradesh.

The strengthening of Rosa Power’s balance sheet, along with a recent Rs 1,525 crore preferential issue, is set to support Reliance Power in exploring new business opportunities, particularly in the renewable energy sector. 

On Monday, the Reliance Power board approved the preferential issue, with more than Rs 600 crore coming from its promoter company, Reliance Infrastructure, and the remaining Rs 900 crore from Authum Investment and Infrastructure Ltd. and Sanatan Financial Advisory Services.

This preferential issue is expected to take Reliance Power's net worth to more than Rs 12,680 crore from the current Rs 11,155 crore, maintaining its zero-bank-debt status.

The company plans to use the proceeds to expand business operations, either directly or through investments in its subsidiaries.

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