Reliance Power hits upper circuit as shares rise for 8th consecutive session
Last week, Reliance Power was in the spotlight after announcing that it had been released from corporate guarantees and obligations related to the debt of its subsidiary, Vidarbha Industries Power Limited (VIPL).
 )
FollowShares of Reliance Power on Monday (September 23) surged by 5% in early trading as the company's board convened to discuss plans to raise long-term resources from both domestic and global markets. The stock price hit Rs 38.16, up from the previous close of Rs 36.35 on the BSE. The company's market capitalization rose to Rs 15,328 crore, with over 24.91 lakh shares traded, resulting in a turnover of Rs 9.50 crore.
Reliance Power shares have showed strong momentum, trading above key moving averages, including the 5-day, 10-day, 20-day, 30-day, 50-day, 100-day, 150-day, and 200-day averages. The stock's beta stands at 0.9, indicating relatively low volatility over the past year. However, with a relative strength index (RSI) of 70.8, the stock appears to be in the overbought zone, signaling potential caution for investors.
Netflix India being probed over visa violations, racial discrimination: Report
Today's board meeting is focused on raising long-term capital through various means, including the issuance of equity shares, equity-linked securities, warrants convertible into equity shares, or other financial instruments. The company also aims to determine the issue price and seek necessary approvals for the fundraising.
Last week, Reliance Power was in the spotlight after announcing that it had been released from corporate guarantees and obligations related to the debt of its subsidiary, Vidarbha Industries Power Limited (VIPL). The debt, totaling Rs 3,872.04 crore, was settled after the company reached an agreement with CFM Asset Reconstruction Private Limited (CFM). The resolution involved pledging 100% of VIPL's shares in favor of CFM, resulting in the release of the corporate guarantee provided by Reliance Power.
Petrol, diesel prices for September 23 announced: How much it costs in your city?
This development has added further positive sentiment to the stock, contributing to its recent rally. The power generation company, part of the Anil Ambani-led Reliance Group, continues to focus on strengthening its financial position, as evidenced by the board's focus on capital raising and the resolution of its subsidiary's debt obligations.
subscribe to Asianet Newsable WhatsApp channel by clicking here.
