Reliance Power shares surged by 5% to reach a new 52-week high of Rs 46.36 today, marking a remarkable 46.6% increase over the last eight consecutive trading sessions. The small-cap stock has been on a sustained upward trajectory during this period, drawing significant investor interest.
Reliance Power 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 48.99%, reflecting its stability and growth potential. In the last six months, it has surged by an impressive 67.63%, indicating a robust upward trend.
Year-to-date, Reliance Power shares have jumped 98.93%, highlighting the stock’s continued momentum during the current fiscal year. Over the past twelve months, the stock has delivered a remarkable return of 141.41%, underscoring its sustained growth and appeal to investors.
Recent Developments and Obligations Resolution
Reliance Power, a favored stock among retail investors, recently made headlines by announcing it had resolved its obligations worth Rs 3,872.04 crore to CFM Asset Reconstruction. In exchange for the release and discharge of Reliance Power’s guarantee, 100% of VIPL’s shares have been pledged to CFM.
Regulatory Challenges for Reliance Power
Earlier this year, the company faced challenges when market regulator SEBI barred Anil Ambani from the securities market for five years due to allegations of fund siphoning from Reliance Home Finance. Despite these hurdles, Reliance Power’s recent performance reflects a notable recovery and positive sentiment among investors.
Preferential Allotment Approval
This recent rally follows the company’s board approving the issuance of up to 46.2 crore equity shares and/or warrants worth Rs 1,525 crore through a preferential allotment announced on Monday.
As part of this move, Reliance Infrastructure, the company’s promoter, plans to increase its equity stake by over Rs 600 crore. Other investors participating in this preferential issue include Authum Investment and Infrastructure Limited, as well as Sanatan Financial Advisory Services Private Limited.
Where will be the Funds Utilized?
The funds raised from this preferential issue are intended to expand business operations, either directly or through investments in subsidiaries and joint ventures. Additionally, a portion of the proceeds will be allocated toward reducing debt and other general corporate purposes.
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