Reliance Power Shares Jump 5% Following Rs 357-Crore Block Deal

Reliance Power Shares: The firm has reaffirmed its status as a debt-free entity on a standalone basis and expressed plans to explore growth opportunities, especially in the renewable energy sector

A significant block deal involving shares worth Rs 357 crore of Reliance Power occurred on the exchanges on Wednesday. Approximately 8.6 crore shares, equating to a 2.1 per cent stake in the company, were traded at a floor price of Rs 42 per share. This price represented a premium over the previous closing price.

Following the transaction, Reliance Power's stock price surged about 5 per cent on the BSE. On Wednesday at 1 pm, shares of Reliance Power were trading at Rs 42.06 apiece, rising 4.99 per cent on the BSE. On the Nifty, the stocks were trading at Rs 42.05 per stock, gaining 4.99 per cent. Trading volumes also spiked, with 22 crore shares changing hands — sharply higher than the monthly average of 5 crore shares.

The previous trading session saw Reliance Power shares hit the 5 per cent upper circuit after the company, led by Anil Ambani, announced a preferential issue of 46.2 crore equity shares valued at Rs 1,524.60 crore. The shares were offered at Rs 33 per unit, reflecting a 14 per cent discount to the September 23 closing price.

Reliance Power has reaffirmed its status as a debt-free entity on a standalone basis and expressed plans to explore growth opportunities, especially in the renewable energy sector. The company is considering expansion through special purpose vehicles and subsidiaries to strengthen its presence in the sector.

To enhance long-term resources, improve net worth, reduce debt, and support future growth and working capital needs, Reliance Power proposed issuing fresh capital to boost shareholder value.

Earlier this week, Reliance Power’s board approved raising Rs 1,525 crore through a preferential issue. Promoters are expected to inject Rs 600 crore into the company as part of this initiative. This decision comes shortly after Reliance Infrastructure, another Anil Ambani-led company, approved a Rs 6,000 crore fundraising plan.

“The Board of Directors of Reliance Power Limited has approved raising Rs 1,524.60 crore through a preferential issue of up to 46.20 crore equity shares and/or warrants convertible into equivalent shares at a price of Rs 33 per share/warrant,” the company said in a statement.