Reliance Power up for 4th day in row, shares hit 5% upper circuit; here's why

The scrip opened at ₹36 apiece on on the National Stock Exchange (NSE), up 4.6% as against the last closing price.

Shortly after the opening bell, the stock was locked in the 5% upper circuit as it reached the value of ₹36.14.

Reliance Power has hit the upper circuit in all the three trading sessions of the week so far. The surge in stock has been linked to a news report released on Monday, which claimed that Adani Power is considering to acquire the company's 600 MW Butibori thermal power project in Nagpur.

Vidarbha Industries Power, a division of Reliance Power, is currently operating the the Butibori project. "The value of the project, which consists of two power plant units, was earlier around ₹6,000 crore, but currently, the production (power generation) has stopped; so, the valuation has to be lower," an official was quoted as saying by the newspaper.

Upstox could not independently verify the news. Adani Power and Reliance Power were yet to confirm the developments.

Q1 net loss narrows

Notably, the shares of Reliance Power marked an upward surge last week as well, when the stressed company reported a net loss of ₹98 crore in the June 2024 quarter, as against ₹296.3 crore in the year-ago period.

The company’s total income increased to ₹2,069.18 crore in the June quarter, compared to ₹1,951 crore in the same quarter a year ago. This marked an increase of 6% year-on-year.

Year-to-date, Reliance Power's stock has gained by around 50%. The surge has been sharper, at around 120%, over the past 12 months.