Reliance Power share price skyrockets 18% as bulls spurt trade volumes, biggest intraday jump since January 2024
Reliance Power share price in focus: Reliance Power's share price surged 18.5% in intraday trading on Friday, May 23, reaching a six-month high of ₹ 52.82 apiece on the back of a sharp surge in trading volumes. The rally also marked the stock's biggest intraday jump since January 2024.
A total of 232.3 million shares changed hands on both the NSE and BSE as of 1:00 p.m. today, marking a four-fold increase over the stock's average weekly volume of 54 million shares. The stock has been on investors' radar in recent weeks due to multiple positive developments that have helped sustain the momentum and push the stock to multi-month highs.
On May 20, Anil Ambani-owned Reliance Power executed a preferential allotment of equity shares aggregating ₹ 43.89 crore to two entities—Reliance Infrastructure Limited and Basera Home Finance Private Limited.
According to an exchange filing, the company allotted a total of 1.33 crore fully paid-up equity shares at ₹ 33 per share (inclusive of a ₹ 23 premium). The shares were issued under the SEBI (ICDR) Regulations, following the exercise of rights attached to previously issued warrants.
In addition, Reliance Power recently announced a strategic international venture with Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. The two companies will jointly develop Bhutan's largest solar power project, with a planned installed capacity of 500 MW.
In October 2024, Reliance Enterprises—jointly promoted by Reliance Power Limited and Reliance Infrastructure Limited—initiated a strategic partnership with DHI to develop solar and hydropower projects in Bhutan.
The ₹ 2,000 crore project will be developed under a 50:50 joint venture on a Build-Own-Operate (BOO) basis. The company stated that the agreement—marked as the largest private sector FDI in Bhutan's solar energy sector to date—was formalized through a commercial term sheet with Green Digital Private Limited (GDL), a DHI-owned entity.
Reliance Power said its total clean energy pipeline stands at 2.5 GWp of solar and over 2.5 GWh of BESS, making it India's largest player in the integrated solar + BESS segment.
The turnaround in financial performance during the March quarter has also fueled renewed investor interest in the stock on Dalal Street. For the quarter ended March, the company posted a consolidated net profit of ₹ 126 crore, a significant recovery from a loss of ₹ 397.56 crore in the same quarter last year, driven by lower finance costs and reduced operating expenses.
Total operating expenses fell from ₹ 3,575 crore in Q4FY24 to ₹ 2,108 crore in Q4FY25. However, revenue from operations declined to ₹ 2,066 crore from ₹ 2,193.85 crore year-on-year, primarily due to lower realizations.
Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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