Reliance Power's share price soared over 3% on December 9, 2024. The stock shot up to ₹46.00 at the Bombay Stock Exchange (BSE), where it gained 3.41% during early trade.
Reliance Power stock rose after the announcement of its subsidiary, Samalkot Power, loan repayment. Samalkot paid off the entire interest outstanding on a term loan from the Export-Import Bank of the United States.
Anil Ambani-owned giant said in its December 6, 2024, stock exchange filing, "Consequent to the aforesaid payment by Samalkot, the default of the Company as a Guarantor to the aforesaid loan stands cured."
On 3 December, Reliance Power said SECI had issued an official withdrawal of the SECI (Solar Energy Corporation of India) notice. The company noted, "Consequently, the Company and its subsidiaries, other than Reliance NU BESS Limited, are entitled to participate in all tenders floated by SECI.”
SECI had previously barred the company from participating in renewable energy tenders for three years due to alleged document-related irregularities.
Reliance Power has given fantastic returns over the last year, with the stock rising:
1. 14% in the last week.
2. 47% in the last three months.
3. Over 85% year-to-date (YTD).
The stock has seen its 52-week high at ₹54.25 on October 4, 2024, and a low of ₹19.37 on March 14, 2024. As of 11.39 am on December 9, Reliance Power (RPOWER.NS) shares are trading at approximately ₹45.
The settlement of loan obligations and the SECI decision have opened doors for new opportunities in the renewable energy sector for Reliance Power. All these milestones speak to the efforts that the company is continuously making to strengthen its financial status. The stock surge has also boosted investor confidence.
Will this upward momentum of the Anil Ambani-owned company continue remains to be seen.