Mon Sep 23 11:10:55 UTC 2024: ## Reliance Power Shares Surge on Debt Settlement, Hit 5% Upper Circuit

Reliance Power shares skyrocketed to the 5% upper circuit on Wednesday, reaching Rs 38.15 on the National Stock Exchange (NSE). The surge comes ahead of the company’s board meeting on September 23, where they will discuss raising long-term resources from domestic and global markets.

This marks the eighth consecutive trading day of gains for the power stock, with the company’s market capitalization now at Rs 15,328 crore. The strong performance is attributed to the recent settlement of a long-standing debt dispute with CFM Asset Reconstruction Private Limited (CFM).

Reliance Power, along with its subsidiaries Rosa Power Supply Company and Vidarbha Industries Power Limited (VIPL), successfully settled the outstanding debt of Rs 3,872.04 crore owed by VIPL. The company pledged 100% of VIPL’s shares to CFM in exchange for the release and discharge of the corporate guarantee.

The settlement agreement involved all parties withdrawing any pending legal actions against each other, including an insolvency application filed by CFM against Reliance Power and Rosa. This move has significantly boosted investor confidence in the company, resulting in a 59% rise in share price year-to-date, outperforming the Nifty’s 19% return.

This impressive growth has also driven investor interest in Reliance Power’s future prospects, further contributing to the current surge in share price. The company’s focus on raising long-term resources could further enhance its financial position, paving the way for future growth.

**Disclaimer:** This news article is for informational purposes only and should not be considered investment advice. Please consult with a certified financial expert before making any investment decisions.

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