Reliance Power had paid off the loans of three banks - ICICI Bank, Axis Bank and DBS Bank - last week. While its parent company Reliance Infrastructure is working towards settling the dues of Rs 2,100 crore of JC Flowers Asset Reconstruction Company.
Now it seems that Anil Ambani's good days have started. We are not saying this just like that. In fact, his company has done such magic that it will become debt free in the next 10 days. It is clear that Ambani's company is playing an important role in making him debt free. This company is none other than Reliance Power. Which had paid the loans of three banks – ICICI Bank, Axis Bank and DBS Bank – last week. While its parent company Reliance Infrastructure is working towards settling the dues of Rs 2,100 crore of JC Flowers Asset Reconstruction Company.
In an ET report, a senior official of a commercial bank said that Reliance Power's target is to become a debt-free company by the end of this financial year. The only loan in its account will be the working capital loan of IDBI Bank. Another lender said ICICI Bank, Axis Bank and DBS Bank together had about Rs 400 crore and have recovered about 30-35 per cent of their principal loan.
had made a standstill agreement
According to a notice issued to the exchanges on January 7, Reliance Infrastructure and JC Flowers ARC had entered into a standstill agreement. Initially, this standstill agreement was till March 20, 2024, according to a separate stock exchange disclosure. “It was recently extended to March 31, 2024,” a Reliance Infrastructure spokesperson said. As per the standstill agreement, JC Flowers ARC will not take legal action against Reliance Infrastructure till March 31, giving the company time to arrange the funds. There has been no statement on this from ICICI, Axis and DBS Bank. On the other hand, Reliance Power has not commented on the details of loan settlement.
yes bank dues
According to stock exchange disclosures, Reliance Power raised equity worth Rs 240 crore from VFSI Holdings on March 13. According to bankers, this money was probably used to settle the dues of the banks. VFSI Holdings Global Asset Management is a subsidiary of Verde Partners. Original lender Yes Bank has transferred its loan book of Rs 48,000 crore to JC Flowers ARC, which also includes loans given to Reliance Infrastructure and Reliance Power. Reliance Power told the exchanges that its total financial liabilities as of December 31, 2023 were Rs 765 crore. Separately, Reliance Infrastructure said its total liabilities for the same period stood at Rs 4,233 crore. According to exchange disclosures, in April 2023, Reliance Power settled the loan with two lenders – JC Flowers ARC and Canara Bank.
investment is coming
Reliance Power had offered 200 million equity shares to VFSI Holdings at Rs 15.55 per share in September 2022; Of this, 25 per cent was then subscribed for Rs 80 crore, while the remaining was issued in the form of warrants. VFSI exercised the right to convert the warrants into shares resulting in an investment of Rs 240 crore. In August this year, Reliance Commercial Finance, which was acquired by Authum Investment and Infrastructure, invested Rs 1,043 crore in both the Reliance companies. It invested Rs 891 crore in Reliance Infrastructure and Rs 152 crore in Reliance Power.
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