Reliance Power Share Price Zooms 19%: What’s Fuelling The Rally?

Reliance Power shares surged nearly 19% during Friday's session after witnessing a massive surge in trading volume. The stock hit an intraday high mark of Rs 53 per share on BSE on Friday.

The power generation sector stock had opened at a price of Rs 44.89 per share and surged nearly 18.8% to touch its intraday high mark. Its market capitalisation stood at Rs 20,840.05 crore.

Reliance Power's share price value has increased nearly 16% year to date (YTD). In last one week, its stock price value has increased nearly Rs 15%. The company stock touched its 52-week high mark of Rs 54.25 on 4 October, 2024. Whereas, Reliance Power share price had hit a 52-week low mark of Rs 23.26 per share on BSE on 5 June, 2024.

Reliance Power Share Price Rally: What's Fuelling The Surge?

The sudden surge in Reliance share price today has coincided with spurt in Reliance power shares trading volume by neary 2.5 times. Nearly 4.39 lakh Reliance Power shares exchanged hands at 12:30 pm on Friday. The sudden surge in Reliance Power share price value has come days after the company announced its partnership with Druk Holding and Investments Limited (DHI) to build Bhutan's largest solar power project.

Reliance Power To Develop Bhutan's Largest Solar Power Project

Reliance Power has entered into an agreement with Green Digital Private Limited (GDL), owned by Druk Holding and Investments Limited (DHI) for the development of world's largest solar power project through a 50:50 venture, said Reliance Power in a press release issued on Monday.

The project by Reliance Power will be key a crucial step for boosting cross-border infrastructure collaboration across South Asia. "Reliance Power and DHI will jointly develop Bhutan's largest solar power project through a 50:50 venture, with an installed capacity of 500 MW. The project entails a capital outlay of up to INR 2,000 crores under Build-Own-Operate (BOO) model, representing the largest private sector foreign direct investment (FDI) in Bhutan's solar energy sector to date," read Reliance Power's BSE exchange filing.
The project will enable the company to focus on high-impact, long-duration clean energy assets. The solar energy power plant project would also help the company to strengthen its position in the regional power infrastructure space.

After the confirmation of this project, Reliance Power's total clean energy projects, under pipeline, stand at 2.5 GWp solar and >2.5 GWhr Battery Energy Storage System (BESS), making it India's largest player in the integrated Solar + BESS segment.

The project has been stipulated to be completed in next 24 months. The project will be completed in phased tranches over the next two years. The partnership between Reliance Power and DHI will also work collectively to develop a 500 MW solar power project. The partnership also entails the execution and long-term operation of 770 MW Chamkharchhu-I hydroelectric project, a run-of-the-river asset structured under a long-term concession model, aligned with Bhutan's national energy strategy.

Reliance Power Q4 Result

The Reliance Enterprises subsidiary reported a net consolidated profit of Rs 126 crore in the March quarter of financial year 2024-25. The company reported a major reduction in its expenses. The company ahd reported a net consolidated loss of Rs 397.5 crore during the year ago period.

Its total income during the March quarter stood at Rs 2066 crore against Rs 2193.8 crore in the corresponding period of the previous financial year. The total expenses of the company fell significantly to Rs 1998.49 crore against Rs 2615.15 crore.