Ambani Group stock engaged in the business of developing, constructing, and operating power projects hits a 5 percent upper circuit in the day’s trade following repayment of a $150 Million debt obligation.
Price Action
With a market capitalization of Rs. 17,948 Crores, the shares of Reliance Power Limited hit a 5 percent upper circuit in the day’s trade at Rs. 44.68 per equity share, from its previous day’s close price of Rs. 42.56.
What Happened
Sasan Power Limited, a subsidiary of Reliance Power Limited engaged in the business of developing, constructing, and operating power projects, has made a bullet payment of US$150 million to IIFCL, UK, fulfilling its debt obligation on 31 December 2024. Thereby bolstering Sasan Power’s debt coverage metrics, improving liquidity, and enhance its credit rating.
Sasan Power operates a 3960 MW Ultra Mega Power Plant (UMPP) in Sasan, Madhya Pradesh, which is the world’s largest integrated coal-based power plant. It boasts a captive coal mining capacity of 20 MTPA.
The plant supplies electricity to 14 Discoms distribution companies (DISCOMs) across seven states i,e., Madhya Pradesh, Uttar Pradesh, Rajasthan, Punjab, Haryana, Uttarakhand, and New Delhi at the lowest tariff in India of Rs. 1.54 per unit, benefiting more than 40 crore people.
Reliance Power, a zero-debt firm, obtained Rs. 1,525 crore through equity-linked warrants in a recent preferential issuance. The firm is positioned to take advantage of growth prospects in the quickly growing renewable energy sector thanks to this cash injection.
Reliance Power’s financial sheet is further strengthened by the loan repayment as the business shifts its emphasis to the renewable energy industry, which is expected to spur future expansion.
Recent Updates
SECI withdraws the debarment notice of 3 years against Reliance Power Limited and Reliance NU BESS (New Energy Battery Energy Storage Systems), effective immediately. This will allow the company to have rights for future tenders. SECI retains its legal rights, and the earlier public notice is modified to reflect this update.
About the Company
Reliance Power Limited is engaged in the business of developing, constructing, and operating power projects across India as well as across borders. It is involved in coal, gas, hydro, wind, and solar-based energy projects. It has close to 6,000 MW of operational power generation assets
Financials and Ratios
Its Revenue from operations declined by 8 percent from Rs. 2,130.83 Crores in Q2FY24 to Rs. 1,962.77 Crores in Q2FY25, accompanied by losses of Rs. 237.76 Crores to a profit of Rs. 2,878.15 Crores.
In terms of Return ratios, it has reported a return on equity (ROE) of -13.67 percent, and a return on capital employed (ROCE) of 1.06 percent. It has reported a debt-to-equity ratio of 1.04.
Written by: Bharath K.S
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