Reliance Group-backed & Anil Ambani-owned; Multibagger penny stock at under Rs 40 hits upper circuit for the 4th straight day; Complete details inside!
The stock gave multibagger returns of 133 per cent from its 52-week low of Rs 15.53 whereas BSE Sensex Index is up by 28 per cent in the same period.
Anil Ambani owned Reliance Power Ltd, on Wednesday, the stock ended the trading session at Rs 36.17 per share on the BSE from its previous closing of Rs 34.45 per share getting locked at the 5 per cent upper circuit. The stock has been hitting 5 per cent upper circuits for the 4th consecutive trading session. The stock also made a fresh 52-week high of Rs 36.17 per share while its 52-week low is Rs 15.53 per share.
Adani Power is in talks to buy the 600 MW Butibori Thermal Plant from Vidarbha Industries Power for an estimated value between Rs 2,400 crore and Rs 3,000 crore. This acquisition would help Adani Power meet the increasing demand for electricity in India. The plant, which was previously valued at around Rs 6,000 crore, has stopped production. Adani Power is negotiating with CFM Asset Reconstruction Co to acquire the project under Vidarbha Industries Power Ltd.
In this regard to the above update, the company said, “We would like to clarify that we are unable to comment on media speculations and it would be inappropriate on our part to do so. The Company continuously assesses different opportunities to settle its liabilities and is unable to provide any comment on movement in price in the stock markets. Appropriate disclosures will be made by applicable regulations, as and when any disclosable event occurs”.
Reliance Power Ltd is a company in India that builds and runs power plants, both within the country and abroad. They own a large collection of operational plants and have additional projects still in development. This includes facilities that use coal, natural gas, hydropower, wind and solar power.
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Earlier, the company became debt-free on a standalone basis after repaying approximately Rs 800 crore in outstanding dues to lenders. Between December 2023 and March 2024, Reliance Power signed multiple debt settlement agreements with banks such as IDBI Bank, ICICI Bank, Axis Bank, and DBS, and successfully cleared its debts.
To achieve this, Reliance Power sold the development rights for its proposed 1,200 MW hydroelectric project in Arunachal Pradesh to THDC for Rs 128 crore in December 2023. Additionally, in March 2024, the company sold its 45 MW wind energy project in Vashpet, Maharashtra to JSW Renewable Energy for Rs 132 crore. The proceeds from these sales were used to retire the company's debt, allowing Reliance Power to strengthen its financial position and regain investor confidence.
With a market cap of over Rs 14,500 crore and 40.9 lakh shareholders, Reliance Power operates a total capacity of 5,900 MW. This includes the 3,960 MW Sasan Ultra Mega Power Project (UMPP) and the 1,200 MW Rosa Thermal Power Plant in Uttar Pradesh. The Sasan UMPP is one of the largest integrated coal-based power plants in the world, showcasing Reliance Power's significant contribution to India's energy sector. The company's debt-free status and enhanced operational efficiency have attracted positive attention from investors.
The stock gave multibagger returns of 133 per cent from its 52-week low of Rs 15.53 whereas BSE Sensex Index is up by 28 per cent in the same period. Investors should keep an eye on this Small-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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