Shares of Reliance Power, which had surged 44% in the past two weeks, fell over 4% in Monday’s trading session ahead of a board meeting to discuss raising long-term resources from domestic and global markets. The stock declined by 4.33%, reaching a low of Rs 44.35 on the BSE.
Upcoming Board Meeting
The board of directors of Reliance Power is scheduled to meet on Thursday, October 3, to consider and approve the raising of long-term resources through the issuance of equity shares, equity-linked securities, or warrants convertible into equity shares.
The company stated that it may also explore funding through a preferential issue and/or a qualified institutional placement (QIP). Other methods, including a rights issue, foreign currency convertible bonds, and determining the issue price, will also be on the meeting’s agenda.
Recent Equity Allotment
Recently, Reliance Power attracted attention after allotting 46.20 crore equity shares worth Rs 1,524.60 crore via a preferential issue to promoter Reliance Infrastructure Ltd and two non-promoter entities: Authum Investment and Infrastructure Ltd and Sanatan Financial Advisory Services Private Ltd (owned by Sanjay Kothari and Meenakshi Sanjay Kothari). The funds raised are intended to help expand the company’s renewable energy portfolio.
Plans for Fund Utilization
Reliance Power plans to allocate a substantial portion of the proceeds, approximately Rs 803.60 crore, towards expanding its presence in the renewable energy sector and exploring new business opportunities, including addressing long-term working capital requirements.
Financial Health
On a consolidated basis, Reliance Power recently reported zero debt from banks and financial institutions, with a net worth of Rs 11,155 crore as of June 30.
This improvement follows the settlement of all disputes with CFM Asset Reconstruction Private Limited, after which the company pledged 100% of the shares of its subsidiary, VIPL, in exchange for the release and discharge of a corporate guarantee previously issued.
Stock Performance in Last One Year
Reliance Power shares have shown strong performance across various time frames, delivering positive returns. Over the past month, the stock has risen by 50.81%, reflecting its stability and growth potential. In the last six months, it has surged by an impressive 57.06%, indicating a robust upward trend.
Year-to-date, Reliance Power shares have jumped 89.35%, highlighting the stock’s continued momentum during the current fiscal year. Over the past twelve months, the stock has delivered a remarkable return of 135.43%, underscoring its sustained growth and appeal to investors.
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