Why will Anil Ambani-owned Reliance Power shares be in focus tomorrow? EXPLAINED
Shares of Anil Ambani-led Reliance Power are likely to be in the spotlight on Wednesday, May 21, following key corporate developments including a preferential share allotment worth ₹ 43.89 crore and a landmark renewable energy partnership in Bhutan.
Anil Ambani-owned Reliance Power has 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 ₹ 23 premium). The shares were issued under the SEBI (ICDR) Regulations, following the exercise of rights attached to previously issued warrants.
Out of the total allotment, 33 lakh shares were allotted to Reliance Infrastructure, while 1 crore shares were issued to Basera Home Finance. Notably, the allotment price of ₹ 33 per share reflects a steep 26 percent discount to Tuesday's closing price of ₹ 44.73, a move likely to draw investor scrutiny in the trading session ahead.
Adding to the buzz, 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.
The ₹ 2,000 crore project will be developed under a 50:50 joint venture on a Build-Own-Operate (BOO) basis. The agreement, marked as the largest private sector FDI in Bhutan's solar energy segment to date, was formalized through a commercial term sheet with Green Digital Private Limited (GDL), a DHI-owned entity.
According to Reliance Power, the initiative aligns with its clean energy strategy and underscores its position as India's largest player in the integrated Solar plus Battery Energy Storage System (BESS) category. The company's clean energy pipeline currently stands at 2.5 GWp of solar capacity and over 2.5 GWh of BESS capacity.
'The landmark solar investment in Bhutan underscores Reliance Group's strategic focus on expanding its renewable energy portfolio while reinforcing its long-term commitment to strengthening India-Bhutan economic cooperation,' the company said.
In addition to these developments, Reliance Power recently reported a notable turnaround in its financials for Q4FY25. The company posted a consolidated net profit of ₹ 126 crore for the January–March quarter, a significant recovery from a loss of ₹ 397.56 crore during the same quarter the previous year. However, total income declined to ₹ 2,066 crore from ₹ 2,193.85 crore YoY, primarily due to lower revenues.
Shares of Reliance Power ended 2 percent lower at ₹ 44.73 on Tuesday, but have gained 12 percent in May so far, bouncing back from a 7 percent dip in April. Prior to that, the stock corrected 29 percent in March, 17 percent in February, and 6 percent in January.
Despite recent volatility, the stock has soared 75 percent over the past year and is currently trading 17.5 percent below its 52-week high of ₹ 54.25 hit in October 2024. However, it remains up 92 percent from its 52-week low of ₹ 23.26 recorded in June 2024.
Remarkably, Reliance Power has delivered multibagger returns of over 2,480 percent in the last five years, reaffirming its position as one of the best-performing Anil Ambani Group stocks over the long term.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
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