Reliance Power hits new high

Reliance Power, which had closed yesterday at Rs.15.46, went on to hit a new high and its 5% UC of the day at Rs.16.23, where it currently stays frozen.

The stock is up on unconfirmed news that it talking with a group of foreign investors and lenders, to reduce its debt by 79%, from the current Rs.1400 crore to Rs.300 crore.

The news is that the investors will either take over the debt for equity or refinance debt at a lower rate.

A couple of days ago this week, the company said that it will raise Rs.1325 crore by issuing preferential shares and warrants to its parent company, Reliance Infra – a move to pare debt. This issuance is by way conversion of existing debt into 59.50 crore equity shares and 73 crore warrants convertible into an equivalent number of equity shares of Reliance Power.

As at 31st March’21, the company’s debt stood at Rs.20,625 crore v/s Rs.24,24 crore at end of FY20. The company has set itself a target to bring down the consolidated debt by Rs.3200 crore this fiscal.