Reliance Power, Led by Anil Ambani, Hits 5% Upper Circuit as Company Pays Bank Dues

Reliance Power Shares: Following news that the Anil Ambani-led business has cleared its obligations with three banks, ICICI Bank, Axis Bank, and DBS Bank, Reliance Power shares increased 5% on Wednesday to reach the day’s high of Rs 23.83 on the BSE.

Additionally, according to the sources, its parent company, Reliance Infrastructure, is attempting to pay JC Flowers Asset Reconstruction Company Rs 2,100 crore.

Reliance Power wants to be debt-free by the end of the current fiscal year, according to a senior official from a commercial bank quoted by The Economic Times. The working capital loan from IDBI Bank will be the sole debt shown on company records. According to one outlet, three lenders together had over Rs 400 crore and had collected almost 30–35% of their principle loans, according to another lender.

Reliance Infrastructure and JC Flowers ARC agreed to a standstill agreement until March 20, 2024, which was subsequently extended to March 31, 2024, according to a notification sent to the exchanges on January 7. Under this agreement, JC Flowers ARC will not file a lawsuit against Reliance Infrastructure until March 31.