Wed Sep 18 05:47:00 UTC 2024: ## Reliance Power Shares Surge 5% as Company Settles VIPL Debt and Clears Other Obligations

**New Delhi:** Reliance Power Limited shares soared 5% on Monday morning after the company announced the full settlement of its obligations as guarantor for Vidarbha Industries Power Limited (VIPL). The company has cleared the outstanding debt of VIPL, amounting to Rs 3872.04 crore, through a settlement with CFM Asset Reconstruction Private Limited (CFM). As part of the agreement, 100% of VIPL shares have been pledged in favor of CFM.

This news comes on the heels of Reliance Infrastructure Limited announcing the successful resolution of its own outstanding debt obligations. The company has cleared its funded dues to several lenders, including Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, and Union Bank. The company’s external debt liability has now been reduced to INR 475 crore, leading to a significant increase in its net worth, which is expected to stand at Rs 9,041 crore.

These developments have been met with positive market sentiment, pushing Reliance Power shares to their upper circuit limit at Rs 32.98 apiece by 11:02 am. The company’s successful debt resolution efforts are seen as a major step towards financial stability and a promising sign for future growth.

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