Reliance Power’s shares hit the 5% lower circuit at Rs 41.58 after the company was debarred by Solar Energy Corporation of India (SECI) from floating any tender for the next three years over fake tender documents.
Reliance Power and its subsidiary Reliance NU BESS were debarred as it emerged as the lowest bidder for a project by forging documents. The project was to set up a 1000 MW/2000 MWh standalone BESS project under tariff-based competitive bidding.
“It was discovered that as per the tender requirements, the endorsement of the Bank Guarantee against EMD (issued by a foreign Bank), as submitted by the Bidder, was fake. Since the above discrepancy was discovered subsequent to the e-Reverse Auction, SECI was constrained to annul the tendering process. As per the tender conditions, the above submission of a fake document as part of its response to RfS, rendered the Bidder eligible for debarment from future tenders issued by SECI,” a release read by SECI.
Reliance Power’s Q2 performance
The company’s consolidated loss narrowed to Rs 97.85 crore in Q1 FY25 due to improved income. It posted a loss of Rs 296.31 crore in the Q1 FY24. The company increased its income to Rs 2,069.18 crore from Rs 1,951.23 crore in the year-ago period.
Reliance Power Vs Nifty 50
The stock of Reliance Power has risen 6.7% in the last five trading sessions. However, the scrip has fallen 4.8% in the last one month. Although, it raised investors’ wealth by 70% in the past six months and 83% from year to date. In the last one year, the stock’s value increased by 114%.
To compare, the benchmark index, Nifty 50 has risen 0.5% in the past five trading sessions. The index has fallen by 3.25% in the last one month. However, it increased its investors’ wealth by 8.5% in the last six months and 11.3% from year to date. In the last one year, the benchmark index has given a return of a bit over 24%.
A month back, Reliance Power approved plans to raise Rs 4,198 crore through foreign currency convertible bonds (FCCBs), to be issued to affiliates of Värde Investment Partners.
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