Reliance Power shares fall over 2% after wind project sale to JSW Energy
Upstox
2 min read • Updated: April 15, 2024, 12:15 PM
Summary
With the sale of the wind power project, Reliance Power will be able to reduce its debt and enhance its financial stability. Meanwhile, the acquisition will help JSW Energy expand its renewable energy portfolio.
In an exchange notification on April 12, Reliance Power confirmed the completion of the sale of its 45-megawatt (MW) wind power project to JSW Renewable Energy Limited. The project was located in Vashpet, Maharashtra and the sale price was ₹132.39 crore.
Shares of Reliance Power witnessed a dip after this announcement. At 12 pm, the stock was trading at ₹26.50, while JSW Energy also saw a decline of 0.46% and was trading at ₹613.60.
The sale will help Reliance Power by raising funds for their existing debt and improving their financial health. Meanwhile, JSW Energy will expand its renewable energy portfolio.
JSW Energy is an Indian power company that generates hydro, solar and thermal energy. The company aims to expand its renewable energy portfolio, and the acquisition of the wind power project from Reliance Power is a step in moving forward in the same direction.
Earlier this year, Reliance Power signed an agreement to sell its 1,200 MW Kalai II hydroelectric project located in Arunachal Pradesh to THDC India for ₹128.39 crore.
Reliance Power, an Indian power company, reported an increase in its net loss in Q3 2023 to ₹1,136.75 crore. This financial strain came despite a slight increase in income (₹2,001.54 crore) as the expenses surged to ₹3,179.08 crore compared to the previous year. JSW Energy, on the other hand, presented contrasting statistics. Their Q3 net profit jumped 28% YoY to ₹231 crore, fueled by higher revenues.