Shares of Reliance Power and Reliance Infrastructure experienced a significant surge, with both stocks rising by 5%. This rally comes as the companies announced their entry into the renewable energy sector in Bhutan, aiming to develop solar and hydroelectric power projects. The move is part of a broader strategy to enhance their renewable energy portfolios and capitalize on growing green energy demands.
The surge in Reliance Power shares was notable, with the stock trading at ₹53.64 on the National Stock Exchange (NSE) during morning trading hours. This increase reflects a growing investor confidence in the company, particularly following its recent strategic announcements. Meanwhile, Reliance Infrastructure shares also rose by 2.4%, reaching ₹339.80.
Key Developments Driving the Surge
- Renewable Energy Projects in Bhutan:
- Reliance Group has secured two major projects totalling 1,270 MW of renewable energy capacity. This includes 500 MW of solar energy and 770 MW of hydroelectric power.
- The projects will be executed in collaboration with Druk Holding and Investments, the commercial arm of the Royal Government of Bhutan. This partnership emphasizes a commitment to green energy generation and innovative technologies.
- Fundraising Initiatives:
- Reliance Power’s board meeting on October 3 was set to discuss additional fundraising strategies aimed at bolstering its renewable energy initiatives. The company had previously announced plans to raise ₹1,524 crore through a preferential allotment of equity shares at ₹33 each.
- Reliance Infrastructure is also pursuing funding options, including issuing foreign currency convertible bonds (FCCBs) to raise approximately ₹2,930 crore.
- Recent Stock Performance:
- Over the past year, Reliance Power shares have surged by 140%, significantly outperforming the broader market indices. The stock has been on an upward trajectory since September 9, driven by various positive developments including contract wins and financial restructuring efforts.
- Analysts have expressed bullish sentiments regarding both stocks, with predictions suggesting that Reliance Power could reach new price targets in the near future.
Market Reactions
The market’s reaction to these announcements has been overwhelmingly positive. Investors are keenly watching how these developments will impact the companies’ long-term growth prospects. The recent rise in stock prices indicates a strong belief in the potential of these renewable energy projects to generate significant returns.
