Reliance Power stock hits 5% upper circuit after subsidiary Sasan Power repays $150 million debt | Stock Market News
Source: Live Mint
Reliance Power share price rallied over 5 per cent on January 1, 2025, after Sasan Power Limited, a subsidiary of Reliance Power, made a bullet payment of $150 million to IIFCL, UK, settling its debt obligation on December 31, 2024.
Reliance Power’s stock gained by 5 per cent, reaching ₹44.68, compared to its previous closing price of ₹42.56 on the BSE. The company’s market capitalization grew to ₹17,947 crore. A total of 33.63 lakh shares were traded, resulting in a turnover of ₹14.89 crore on the BSE.
“Sasan Power Limited (Sasan Power), a subsidiary of Reliance Power Limited (Reliance Power), has made a bullet payment of US$150 million to IIFCL, UK, fulfilling its debt obligation on 31 December 2024. This repayment will bolster Sasan Power’s debt coverage metrics, improve liquidity, and enhance its credit rating,” the company said in an exchange filing.
The transaction is anticipated to strengthen Sasan Power’s debt coverage ratios, increase liquidity, and improve its credit rating, thereby reinforcing the balance sheet of Reliance Power.
About the company
Sasan Power runs the world’s largest integrated coal-based power plant in Sasan, Madhya Pradesh, with a capacity of 3,960 MW. It also has a captive coal mining capacity of 20 MTPA.
The plant provides electricity to 14 distribution companies (DISCOMs) across seven states—Madhya Pradesh, Uttar Pradesh, Rajasthan, Punjab, Haryana, Uttarakhand, and New Delhi—at India’s lowest tariff of ₹1.54 per unit, benefiting over 400 million people.
For seven years in a row, Sasan Power has been ranked as the top-performing power plant in India. The loan repayment further strengthens Reliance Power’s financial position as the company shifts its focus to the renewable energy sector, which is expected to drive future growth.
Reliance Power recently secured ₹1,525 crore through equity-linked warrants via a preferential issue. This funding strengthens the company’s ability to seize growth prospects in the fast-growing renewable energy sector.
