Reliance Power to raise debt of up to Rs 1,200 crore; stock hits 10% upper circuit

Share of Reliance Power hit the upper circuit of 10 per cent after the company said that it will raise long-term resources of up to Rs 1,200 crore from Varde Partners.

Reliance Power in a statement said that on September 4, 2022, RPL and its subsidiary entered into an indicative Memorandum of Understanding (MoU) with Varde Partners for availing debt of up to Rs 1,200 crore for settlement and discharge and/or acquisition and restructuring of certain financial debt availed by RPL.

The stock exchanges will be updated once the terms of the proposed financing are finalised and the definitive documents in relation to the proposed financing are executed, it further said.

Reliance Power, a part of the Reliance Group, is a leading private sector power generation and coal resources company.

The stock of the company has risen nearly 90 per cent in the past one year and 575 per cent in the last 3 years.

For the quarter ended June 30 2022, the company reported net sales of Rs 10.07 crore, down 27.5 per cent from the year-ago quarter's Rs 13.89 crore. The company reported a net loss of Rs 69.18 crore for the latest quarter.