RattanIndia Power shares surge 19% as it secures debt refinancing

The shares of RattanIndia Power ended 19.87 per cent up at ₹5.61.

The company said that in December 2019, it had reached a resolution with its previous lenders regarding the 1,350 MW Amravati Thermal Power Plant.

The loans from Indian banks and financial institutions were taken over by international financial institutions, including Goldman Sachs and Varde Partners, through Aditya Birla ARC. As part of the resolution, both sets of lenders, outgoing and incoming, received a 15 per cent equity stake each.

Since December 2019, RattanIndia Power Ltd has repaid an amount of ₹3,371 crore over last three and a half years to the international financial institutions, out of which Rs. 988 crore was prepayment.

‘’The company’s operational performance remains strong with average EBITDA exceeding ₹1,000 crore per annum since commissioning over the last eight years,” said RattanIndia Power.

1,350 MW Amravati Power Plant has full PPA with Maharashtra discom MSEDCL and full coal linkage with Coal India subsidiary South Eastern Coalfields Limited.

With an installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location), RattanIndia Power is one of India’s largest private power generation companies, with investments of Rs. 18,615 crore. It is also one of the few private sector thermal power generators supplying power to MSEDL.

“Electricity will be a cornerstone for India’s economic growth over the years to come…Amravati Power Plant has been consistently performing for the last eight years with robust cash flows,” said Rajiv Rattan, Chairman of RattanIndia Power.

RattanIndia Power reported a loss of ₹306.39 crore for the quarter ended March mainly due to lower revenues. The consolidated net profit of the company was at ₹39.28 crore in the year-ago period, according to a BSE filing.

Updated: 26 Jun 2023, 04:14 PM IST