Since becoming a debt-free company, Anil Ambani's Reliance Power shares have been rising. The stock of R Power has surged 55 per cent over the past nine sessions. Since the closing price of Rs 31.40 on September 17, RPower shares have hit upper circuits several times. The share rose to Rs 48.66 on Monday on the National Stock Exchange (NSE). While the market cap of the company climbed to Rs 13051 crore, as of September 30. The surge in Reliance Power shares comes ahead of a company board meeting scheduled on October 3 for considering a fundraising proposal.
This growth in the share price has mainly been driven by the company reaching debt-free status. Ever since the news came in, investors have been heavily investing in the company. The transformation of the Anil Ambani-led company began in December 2023 when it started repaying its massive debts. By March 2024, it had repaid loans amounting to Rs 1,023 crore, then Rs 800 crore in August.
Between December 2023 and March 2024, RPower signed multiple debt settlement agreements with various banks, including IDBI Bank, ICICI Bank, Axis Bank and DBS. Most recently, the company settled a Rs 3,872 crore loan. Moreover, the board of Reliance Power Ltd recently approved raising Rs 1,525 crore through a preferential issue where promoters will pour Rs 600 crore into the company to advance its business.
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