Reliance Power shares rallied 5% to hit the upper circuit placed at Rs 46.29 after its arm bagged a 930 MW solar energy contract from Solar Energy Corporation of India (SECI). The company’s IPO price is still 10 times higher than the current stock price. Reliance Power was launched in the secondary market at a price of Rs 450 per equity share.
“Reliance Power Limited (Reliance Power) subsidiary, Reliance NU Suntech (Reliance NU Suntech), won a landmark 930 MW solar energy contract with battery energy storage system project (BESS) from Solar Energy Corporation of India (SECI) in an e-reverse
auction held on 9th December 2024,” read an exchange filing.
Reliance NU Suntech will also install a minimum storage capacity of 465 MW/1,860 MWh charged by solar power, as per the contract, said Reliance Power. However, the Letter of Award (LoA) is awaited from SECI. Reliance NU Suntech’s successful bid for SECI’s Tranche XVII auction was won at a tariff of Rs 3.53 ($0.0416)/kWh.
Recently, SECI withdrew its debarment notice against Reliance Power and its arm Reliance NU BESS. The notice barred these firms from participating in all future tenders issued by SECI for three years.
Also ReadReliance Power shares rise 5% after Solar Energy Corporation lifts ban
Reliance Power’s performance in Q2
The company posted a consolidated net profit of Rs 2,878.15 crore in Q2 FY25, against a net loss of Rs 237.76 crore in the quarter ended September 30, 2023. Its total income dipped to Rs 1,962.77 crore in Q2 FY25, compared with Rs 2,116.37 crore in the same period a year ago.
Reliance Power Vs Nifty 50
The stock of Reliance Power has risen 3.7% in the last five trading days. It has given a return of almost 21% in the past one month and 46% in the previous six months. The stock has delivered a return of more than 92% from year to date and 98.5% in the past one year.
To compare, the benchmark index, Nifty 50 has fallen 0.3% in the last five trading sessions. However, the index has given a return of 3% in the past one month and 5.6% in the last six months. The index has risen 13% from year to date and 18% in the previous one year.
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