New Delhi: Reliance Power share price has rallied 21% in the last five trading sessions. The stock has given returns of 51% in past one month. While, investors’ money has more than doubled in last one year. On Friday, September 27, 2024, the scrip ended the day’s trading session nearly 5% higher at Rs 46 apiece on Bombay Stock Exchange.
So What Has Fueled The Rally In Reliance Power Share Price?
The scrip has caught fire because of the company’s recent developments. The firm is all set to raise cash through various means as its Board of Directors would sit on a meet on October 03, 2024. This has led to development of positive sentiment about the company’s future performance amongst the investors. According to the firm’s recent filing with the BSE, the company would raise cash through all or some of the following ways:
Issue of equity shares
Issue of equity linked securities
Convertible warrants
Preferential issue
Qualified institutional placement
Rights issue
Foreign currency convertible bonds
Secondly, the energy manufacturing company’s recent development regarding release and discharge of all obligations to the tune of Rs 3,872.04 crore as a guarantor of Vidarbha Industries Power Limited (VIPL). Reliance Power said it has settled all disputes with CFM Asset Reconstruction Company Private Limited. The energy manufacturing firm has pledged 100% share of VIPL in favour of the CFM. As a result, VIPL ceases to be a subsidiary of Reliance Power. This has enabled the company to achieve zero debt status. These factors have also contributed to the recent rally in Reliance Power share price.
Plus, the power manufacturing company has also participated in energy projects of the government. According to stock market analysts, these endeavors will pave way for amplifying the firm’s revenue and profitability.
Reliance Power Share Price Valuation
Reliance Power share price’s recent rally has put retail investors in doubt whether they should buy at current levels or not. According to ‘Alpha Spread’ the company is currently overvalued by 57%. According to the stock valuation platform, Anil Amban owned company’s scrip’s intrinsic value is Rs 20 apiece.
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(Disclaimer: This article is only meant to provide information. News24 does not recommend buying or selling shares or subscription of an IPO or Mutual Funds)