Reliance Power jumps after inking pact to raise Rs 1,200 cr from Varde Partners

Reliance Power jumped 6.60% to Rs 22.60 after the company said it will raise long term resources upto Rs 1,200 crore ($150 million) from Varde Partners.

Reliance Power (RPL) and its subsidiary entered into a indicative Memorandum of Understanding (MoU) with Varde Partners for availing debt of upto ~Rs 1,200 crore ($150 million) for settlement and discharge and/or acquisition and restructuring of certain financial debt availed by RPL.

The drawdown of the debt will be subject to finalization and execution of binding documents and all requisite approvals including regulatory approvals as per applicable rules/ laws/ regulations, RPL said in a statement.

"The stock exchanges will be updated once the terms of the proposed financing are finalised and the definitive documents in relation to the proposed financing are executed," the company added.

Vde Partners is a global alternative investment firm specializing in credit and credit-related assets.

RPL, a part of the Reliance Group, is India's leading private sector power generation and coal resources company. The company has one of the largest portfolio of power projects in the private sector, based on coal, gas, hydro and renewable energy, with an operating portfolio of 5,945 megawatts.

On a consolidated basis, RPL reported net loss of Rs 70.84 crore in Q1 June 2022 as against net profit of Rs 12.28 crore in Q1 June 2021. Net sales rose 2.44% to Rs 2062.97 crore in Q1 June 2022 over Q1 June 2021.

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