Why Reliance Power Shares Are Surging: A Look at Recent Developments
Recent Stock Surge of Reliance Power Shares
This week, Reliance Power shares hit the **5% upper circuit** and reached a **new 52-week high** at Rs 46.36, accumulating a staggering **46.6% rise** over the last **8 consecutive trading sessions**. This remarkable performance comes after the company’s board approved the issuance of up to **46.2 crore equity shares** and/or warrants valued at **Rs 1,525 crore** via a preferential allotment.
Factors Behind the Rise
- Equity Issuance: The funds from this issuance will help in expanding operations and reducing debt.
- Stake Increase: Reliance Infrastructure, the company’s promoter, is boosting its stake with an additional **Rs 600 crore** investment.
- Investor Interest: Notable investors such as Authum Investment and Infrastructure Limited are participating in the preferential issue, signifying strong market interest.
Additionally, Reliance Power has resolved **Rs 3,872.04 crore** obligations to **CFM Asset Reconstruction**, pledging 100% of **VIPL's shares** to complete this resolution. After facing regulatory issues, including SEBI's five-year ban on Anil Ambani, the company has bounced back strongly, resulting in **141.6% growth** in the past year and nearly doubling its share price on a year-to-date basis with a **93.6% increase**.
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This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.