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  1. Reliance Power shares hits upper circuit, gain 21% in one week: Key factors aiding the rally

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Reliance Power shares hits upper circuit, gain 21% in one week: Key factors aiding the rally

Upstox

2 min read | Updated on March 26, 2024, 15:52 IST

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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.

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Reliance Power shares hits upper circuit, gain 19% in one week: Key factors aiding the rally

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.

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