Reliance Power hits 5% upper circuit after board’s nod for fundraise
Source: Business Standard
Reliance Power share price was locked in the 5 per cent upper circuit at Rs 40.06 per share on the BSE. The stock also reached its 52-week high on Tuesday. This came after the Anil Ambani led firm Reliance Power’s board approved raising Rs 1,524.60 crore through a preferential issue of up to 46.20 crore equity shares.
The equity shares are priced at Rs 33 per share. Reliance Infrastructure Limited, the company’s promoter, plans to increase its equity stake by over Rs 600 crore. Other investors in the preferential issue include Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.
The proceeds will be used for business expansion, investments in subsidiaries and joint ventures, debt reduction, and general corporate purposes, the company said in a statement.
This preferential issue is expected to raise the company’s net worth from over Rs11,155 crore to more than INR 12,680 crore, while maintaining zero bank debt. The increased capital will support Reliance Power’s participation in the renewable energy sector, the company said.
Reliance Power narrowed its consolidated net loss to Rs 97.85 crore for the quarter ended June 30, 2024 (Q1 FY25), attributed to an increase in revenue and a decrease in expenses. This loss is significantly lower than the Rs 296.3 crore net loss reported in the same quarter last year. Revenue rose by 6 per cent to Rs 2,069.1 crore, driven by a boost in other income.
Tha market capitalisation of Ipca Labs is Rs 16,091.99 crore, according to Bombay Stock Exchange (BSE).
Its shares are trading at a price to earnings multiple of 224.89 times with an earning per share of Rs 0.17. The 52-week high of the company’s share is Rs 40.06 while its 52-week low is Rs 15.53 a piece.
Reliance Power Limited, formerly Reliance Energy Generation Limited is a part of the Reliance Anil Dhirubhai Ambani Group. It was established to develop, construct, operate and maintain power projects in the Indian and international markets.
First Published: Sep 24 2024 | 11:39 AM IST
