Anil Ambani led company share has been falling after hitting upper circuit, this decline comes in the last two trading sessions.
Reliance Power has recently drawn significant attention from investors due to notable fluctuations in its stock price. After reaching a 52-week high of ₹53.64, the shares have experienced a correction, currently trading at ₹48.40, down 11% from their peak.
This decline comes as the stock hit a 5% lower circuit in the last two trading sessions, reflecting concerns that the earlier rally was unsustainable without strong underlying fundamentals.
Key support levels for Reliance Power are ₹44.21 and ₹31.40. If the stock falls below the ₹44.21 support level, it could potentially drop further to ₹31.40,according to repots. The recent downward trend has been partly attributed to profit booking by investors, alongside a broader market sell-off.
Reliance Power Share Performance
Despite the recent volatility, Reliance Power has had some positive developments. On September 16, the stock surged after the company secured a significant renewable energy contract—a 500 MW/1000 MWh Battery Storage project from the Solar Energy Corporation of India (SECI).
Following this, on September 18, investor sentiment was further boosted by news that Reliance Power had settled a long-standing debt issue involving its subsidiary, Vidarbha Industries Power Limited (VIPL), amounting to ₹3,872.04 crore. This resolution involved the release of corporate guarantees, leading to another 5% rally in the stock.
On September 19, Reliance Power shares climbed 5% ahead of a board meeting scheduled for September 23, where the company was expected to discuss raising long-term resources from both domestic and global markets.
Reliance Power Major Announcements
During this meeting, the company announced a preferential issue of 46.2 crore equity shares worth ₹1,524.60 crore at a price of ₹33 per share, representing a 14% discount to the stock’s recent closing price. This issue was to be made to promoter Reliance Infrastructure Ltd, as well as non-promoter entities including Authum Investment and Infrastructure Ltd, and Sanatan Financial Advisory Services Pvt. Ltd.
On October 3, after the much-anticipated meeting, Reliance Power confirmed the allotment of ₹4,200 crore worth of Foreign Currency Convertible Bonds (FCCBs) to affiliates of Varde Investment Partners through a private placement. This move represents a significant step in the company’s strategy to strengthen its financial position.
Overall, while Reliance Power’s stock has experienced some recent volatility, the company’s strategic moves in the renewable energy sector and debt resolution efforts indicate a potential for future growth. However, investors are watching closely to see if the stock will stabilize or fall back to its lower support levels.