Reliance Power shares hits upper circuit, gain 21% in one week: Key factors aiding the rally
Upstox
2 min read • Updated: March 26, 2024, 3:52 PM
Summary
Reliance Power shares have been on an uptrend, rising 19% in the past week and around 28% in the past fortnight. Anil Ambani-backed Reliance Power is working on multiple options to settle its dues with banks which may have attracted investors' interest in the stock.
Shares of Reliance Power extended the rally to the fourth straight session on Tuesday. The stock of the Anil Ambani-led company was locked in the 5% upper circuit at ₹27.60 apiece after the company announced selling a 45 MW wind power project for ₹132 crore in Maharashtra.
JSW Renewable Energy (Coated), a wholly-owned subsidiary of JSW Neo Energy and a step-down subsidiary of JSW Energy, signed a business transfer agreement with Reliance Power for the purchase of the 45 MW Vashpet wind project (business undertaking) as a going concern on a slump sale basis, according to an exchange filing.
The capacity comprises a wind power project located in Sangli, Maharashtra. This project is dedicated to generating power from renewable energy sources.
Reliance Power shares have been on an uptrend, rising 19% in the past week and around 28% in the past fortnight. Multiple factors could be behind this surge in the share price of Reliance Power.
Reliance Power settles dues with banks
As per reports, the Anil Ambani-backed company has settled dues with three major banks— ICICI Bank, Axis Bank, and DBS Bank and only a working capital loan from IDBI Bank remains on the company's books.
Additionally, reports suggest that Reliance Infrastructure, the parent firm of Reliance Power, is working towards settling dues of ₹2,100 crore owed to JC Flowers Asset Reconstruction Company.
Experts say the recent stock rally can also be attributed to fresh capital infusion and debt reduction buzz.