A new 52-week peak of Rs 38.07 was reached by the Ambani-led Reliance Power shares during Friday’s BSE trading, as they reached an upper circuit of 5%. The stock price of the company has surged since then. Currently beating the industry by 5%, the stock has been doing well in the market. Now, the company has gained for five days in a row, and during this time, it has increased by 27.54% overall. 5% gain at opening and an intraday high of Rs. 38.07 were achieved by the stock today.
Increased Stock Price
Since that time, it has fluctuated little from this price. Indicating a positive trend in the market, Reliance Power is presently trading above its five, twenty, fifty, hundred, and 200 day moving averages. This increase coincides with news that Adani Power is reportedly in negotiations to purchase Reliance Power’s 600 MW Butibori Thermal Plant. Reliance Power’s Vidarbha Industries Power is reportedly in talks with Adani Power over this acquisition, which is estimated to be worth between Rs 2,400 crore and Rs 3,000 crore, or around Rs 4 crore and Rs 5 crore per MW, according to media sources.
Adani Power And Butibori Project
Acquiring the Butibori project will enable Adani Power to make use on the expanding demand for energy in India. Additionally, according to reports, Adani Power is reportedly in talks with CFM Asset Reconstruction Co. to make the transaction possible. The project was formerly estimated to be worth about Rs 6,000 crore and consists of two power plant units. But the valuation has dropped because the output has stopped. The purchase fits in with Adani Power’s overall plan. At the moment, CFM ARC is the project’s only creditor, having paid Rs 1,265 crore for its loans. The article stated that the Adani Group’s own accruals will be used to finance the entire transaction.
Reliance Power’s Stock Price Previous Year
Reliance Power’s stock price has increased by 118.34% over the last year, compared to the Sensex’s 24.35% growth. This indicates the company’s dominant position in the market and its capacity to generate returns for its shareholders. MarketsMOJO has issued a Hold call for Reliance Power, advising investors to hold onto their stocks for the time being. Given its impressive performance and the upbeat sentiment in the market, Reliance Power is undoubtedly a company to keep an eye on in the power sector.
