Reliance Power, led by Anil Ambani, has announced a major move, greenlighting a plan to raise ₹6,000 crore in capital. The company informed the stock exchange on July 16th that its board had approved the proposal to raise funds. This amount will be collected through Qualified Institutional Placement (QIP) and other methods.
The company stated that this fund will be raised by offering equity shares, equity-linked securities, or any other eligible instruments to qualified institutional buyers. Additionally, the company may also opt for a Follow-on Public Offer (FPO) or a combination of all these options.
Funds to be raised through debentures as well
Reliance Power's plan is not limited to just QIP. The company has stated that it may also issue secured or unsecured, redeemable and non-convertible debentures (NCDs) of up to ₹3,000 crore. These debentures will be issued through private placement or any other alternative method.
This move by the company clearly indicates that it wants to strengthen its capital base for its business operations and expansion plans.
Quarterly results to be released on July 19th
In another announcement, Reliance Power stated that a board meeting of the company will be held on Saturday, July 19, 2025. In this meeting, the standalone and consolidated unaudited financial results for the first quarter of fiscal year 2025-26, i.e., the June quarter, will be approved.
The market is keeping a close eye on this meeting, as Reliance Power shares have seen a significant surge in recent times.
Share gives impressive returns, becomes a multibagger stock
Reliance Power shares have given impressive returns to investors in the past year. On Wednesday, July 16th, the company's share closed at ₹66.06, up 2.39 percent. The share has shown a surge of more than 59 percent in the last three months.
If we look at one year, this share has given a return of 134 percent. In two years, it has given 337 percent, in three years 491 percent, and a staggering 1907 percent return in five years.
Looking at such figures, it wouldn't be wrong to say that Reliance Power has become a multibagger stock.
Company's image changing under the leadership of Anil Ambani
Reliance Power, which once appeared to be on the verge of bankruptcy, is now seen rising again. Under the leadership of Anil Ambani, the company is trying to re-establish itself.
The recent debt restructuring plans, strategic investment plans, and consistently improving performance on a quarterly basis have brought it back into the investors' focus.
Confidence is again visible in the energy sector
Reliance Power is one of the leading private power generation companies in the country. The company has thermal and renewable power projects in many parts of the country. There were some obstacles in some of the company's projects in the past few years, but now stability is gradually being seen in operations.
Through the fund-raising plan, the company can move forward with its unfinished projects or clear old debts.
Increased market interest in the company's shares
In the past few months, there has been a continuous interest from investors in Reliance Power shares. The reasons behind this have been improvements in the company's fundamentals, reduction of debt burden, and potential funding plans.
Now that the company has officially announced raising up to ₹6,000 crore, it will be interesting to see how QIBs and the market react to this proposal.
Eyes on Q1 results
Now, everyone's eyes are on the board meeting to be held on July 19th and the results of the June quarter. If the company performs well in these results as well, it can further strengthen the current momentum of the share.
Reliance Power is once again in the headlines in the stock market, and it has become necessary for investors and analysts to keep an eye on its activities.
