04 Dec , 2024 By : Debdeep Gupta
Shares of Reliance Power hit the 5 percent upper circuit at Rs 41.09 on December 4, following the withdrawal of a debarment notice by the Solar Energy Corporation of India (SECI).
Year-to-date, Reliance Power has surged 72 percent, significantly outperforming the Nifty 50, which has risen 13 percent during the same period. However, the stock had declined over 12 percent in October and 9 percent in November.
In an exchange filing on December 3, Reliance Power said that SECI's debarment notice had been withdrawn with immediate effect, allowing the company and its subsidiaries—except Reliance NU BESS (formerly known as Maharashtra Energy Generation)—to participate in SECI's tenders. The filing clarified that this decision followed legal proceedings and did not preclude SECI from taking further action if necessary.
SECI, the implementing agency for renewable energy projects, had on November 6 debarred Reliance Power and its subsidiary Reliance NU BESS from participating in any of its tenders for three years over allegations of submitting "fake documents." A week later, on November 13, SECI issued a show-cause notice to Reliance Power, seeking an explanation as to why criminal proceedings should not be initiated following the submission of a fake bank guarantee by its unit.
In Q2FY25, Reliance Power reported a consolidated net profit of Rs 2,878.2 crore, a significant turnaround from a net loss of Rs 237.76 crore in the same period last year. However, the company's total income dipped to Rs 1,962.77 crore in the September quarter, down from Rs 2,116.37 crore in the year-ago period.
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