Reliance Power shares in focus today. Here's why

Shares of Reliance Power Ltd are in focus on Wednesday morning after the private sector power generation company informed stock exchanges that Vidarbha Industries Power Limited (VIPL) ceased to be a subsidiary and the entire obligations of Reliance Power as a guarantor on behalf of VIPL are fully settled now.

This has resulted in release and discharge of its corporate guarantee, undertakings and all obligations and claims in relation to the outstanding debt of VIPL, amounting to Rs 3,872.04 crore.

Reliance Power said it has zero debt from banks and financial institutions and that its networth stood at Rs 11,155 crore on a consolidated basis, as on June 30. 

Reliance Power said it settled all disputes with CFM Asset Reconstruction Private Limited (CFM), as 100 per cent shares of VIPL have been pledged in favour of CFM against the release and discharge of corporate guarantee given by Reliance Power.

Rosa and VIPL would withdraw all proceedings initiated by them against CFM. Further, CFM would withdraw all proceedings initiated
by it against Reliance Power and Rosa. 

Reliance Power said: "the pledge over 1,49,16,260 shares representing 100 per cent equity share capital of VIPL, created by Reliance Power Limited and its subsidiary Rosa Power Supply Company, was enforced by Axis Trustee Services as trustee for CFM Asset Reconstruction and Axis Bank Ltd, the lenders of VIPL, whereby all voting rights in respect of the shares of VIPL will solely be exercised by them along with takeover of the management and control of VIPL by the lenders." 

The entire obligations of the company as a guarantor on behalf of VIPL stands fully settled, resulting in release and discharge of corporate guarantee, undertakings and all obligations and claims thereunder in relation to the outstanding debt of VIPL, amounting to Rs 3,872.04 crore, Reliance Power said in a BSE filing.  

Reliance Power recently participated in Request for Selection to establish a 500 MW/1000 MWh Battery Energy Storage System (BESS) invited by the Solar Energy Corporation of India (SECI) and is awaiting further communication.