Reliance Power’s Share Price Surges by 22%
The investors of Reliance Power shares are happy with the rising price of the share in the market. Over the past week, the share price of Reliance has been surging and has been on an uptrend. According to the reports, the share price of Anil Ambani-owned company has increased by nearly 22%. On Tuesday, 11 June 2024, Reliance Power’s share price opened with an upside gap at ₹27.99 apiece on NSE and touched an intraday high of ₹28.68 per share. The rise in the share price of Anil Ambani’s Reliance made a huge comeback and helped the company to back on track.
After nearing 52-week high levels, the stock of Reliance Power concluded on BSE at 28.67 apiece. The report states that the jump in the share price came after Reliance Power cleared its debt which helped the company to stand back in the market. Earlier, the younger brother of India’s richest man Mukesh Ambani’s company was under a debt of nearly ₹800 crore. But now the company has cleared all the outstanding dues to the banks from where they took the loan. As soon as the debt became clear, its impression was visible on the share price of the company. With the debt clearance, Reliance Industry made a strong comeback.
Reliance Power signed several debt settlement agreements with a range of banks over the past few months. The company took numerous loans from banks including IDBI Bank, Axis Bank, DBS, and ICICI Bank. In 2008, the share price of Reliance Power was trading at around Rs 260.78 and after witnessing a huge downfall, the share of the company slumped on 27 March 2020 to stand at ₹1.13. Since then, the company has made a slow recovery and the result proves that the company has finally recovered and became a debt-free company. With a rise in share price, the company has pulled the attention of traders.
As per stock market experts, with the tag of becoming a debt-free company, the firm has been able to improve operational competence, luring the attention of bulls towards Reliance Power shares. Stock market experts believe that the share of Reliance Power has given a fresh breakout at ₹28 and it is assumed that the price will increase more and may touch ₹36 per share. Research Analyst at StoxBox, Parth Shah shared his opinion over the rise in the share price of Reliance Power and said “Reliance Power is gaining traction due to its becoming debt-free on a standalone basis and clearing all outstanding dues to lenders. The company had a debt of around ₹800 crores, which has been repaid to banks. In addition, the company would benefit from the energy policy, which is a major part of the agenda of the newly formed Modi 3.0 cabinet.”
Assuming that it is just the beginning, the share price of Reliance Power will jump more in the upcoming days or years. “Reliance Power shares have shown a breakout at the ₹28 mark. The stock is displaying a positive chart pattern, indicating potential for further gains. In the immediate term, it may reach ₹32. However, if the stock maintains a closing price above ₹32, we can expect it to touch ₹36 in the near term.”
It is worth noting that, there was a time when Anil Ambani came under the list of one of the richest people in India. He was even standing in the line of the richest man in the world with a rank of no. 6. He had a net worth of more than ₹1.83 lakh crore. But in 2020, Anil Ambani declared bankruptcy in front of a UK court.