Rosa Power Prepares for a Debt-Free Future with Major Prepayment

Rosa Power, a subsidiary of Reliance Power, has prepaid Rs 850 crore of its debt to Varde Partners. The company aims to achieve zero debt by the end of the financial year, supported by a Rs 1,525 crore preferential issue. The proceeds will help explore new business opportunities, especially in renewable energy.

Rosa Power, a subsidiary of Reliance Power, has made a significant prepayment of Rs 850 crore to its Singapore-based lender Varde Partners, according to reliable sources.

The move aligns with Reliance Power’s recent accomplishment of achieving zero debt, positioning Rosa Power to become completely debt-free. The company plans to clear its remaining dues in the next quarter, aiming for a debt-free status by the end of the current financial year.

Rosa Power operates a 1,200 MW coal-based thermal power plant in Rosa village, Shahjahanpur, Uttar Pradesh, and has Varde Partners as its sole lender. The strengthening of Rosa Power’s balance sheet, alongside a recent Rs 1,525 crore preferential issue, will enable Reliance Power to explore new business opportunities, particularly in the renewable energy sector.

This preferential issue, approved by Reliance Power’s board, comprises over Rs 600 crore from its promoter company Reliance Infrastructure and the remaining Rs 900 crore from Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services. The proceeds are expected to bolster Reliance Power’s net worth from Rs 11,155 crore to over Rs 12,680 crore, reinforcing its zero-bank-debt status, as indicated in the company’s stock market filing.

The funds will be utilized to expand business operations either directly or through investments in its subsidiaries.