Reliance Power subsidiaries settle ₹1,023-crore debt, shares rise

Reliance Power Ltd’s shares were up by 1.52 per cent after the company announced a significant debt settlement agreement between its subsidiaries and Authum Investment and Infrastructure Ltd’s wholly-owned subsidiary, RCFL. Reliance Power said its subsidiaries, Kalai Power Pvt Ltd and Reliance Cleangen Ltd, finalised a Debt Settlement and Discharge Agreement with RCFL on March 26, 2024.

This agreement aims to settle the entire outstanding consolidated debt amounting to ₹1,023 crore. By settling this debt, Reliance Power and its subsidiaries aim to alleviate their financial burdens and streamline their operations.

RCFL, the wholly-owned subsidiary of Authum Investment and Infrastructure Ltd, is not affiliated with Reliance Power’s promoter group, nor is it considered a related party. Despite this, RCFL holds a substantial equity stake in Reliance Power, totalling 7,59,77,000 equity shares.

The company recently disclosed a slump sale involving its subsidiary unit, whereby, it has entered into an agreement to sell its 45MW Wind Power Project situated at Vashpet, Maharashtra, to JSW Renewable Energy (Coated) Ltd.

The shares were up by 1.52 per cent at ₹28 at 11.21 am on the BSE.