Shares of Reliance Power surged to hit the 5% upper circuit for the second consecutive day on December 5, 2024. The stock was trading at ₹43.14 on the National Stock Exchange (NSE) and ₹43.12 on the Bombay Stock Exchange (BSE), reflecting strong investor confidence following a significant regulatory development.
The rally follows the Solar Energy Corporation of India (SECI) withdrawing a debarment notice against Reliance Power, which had previously restricted the company from participating in upcoming tenders. This decision came after SECI issued a show cause notice on November 13, citing concerns over a fake bank guarantee submitted by a subsidiary of Reliance Power. The withdrawal allows Reliance Power and its subsidiaries, except for Reliance NU BESS Ltd, to engage in all future SECI tenders.
In its latest financial report, Reliance Power announced a consolidated profit after tax of ₹2,878.15 crore for Q2 FY25, a remarkable turnaround from a net loss of ₹237.76 crore in the same quarter last year. However, total income fell by 7.25% year-on-year to ₹1,962.77 crore. The company also settled ₹3,872 crore in obligations related to its subsidiary Vidarbha Industries Power Ltd, leading to its deconsolidation from Reliance Power’s financials.
