Shares of Reliance Power surged 5% to ₹41.09 on December 4 after the Solar Energy Corporation of India (SECI) withdrew its debarment notice against the company. This development reinstates Reliance Power and its subsidiaries—except Reliance NU BESS (formerly Maharashtra Energy Generation)—as eligible participants in SECI’s renewable energy tenders.
Key Developments
The debarment notice, issued on November 6, barred Reliance Power and Reliance NU BESS from bidding on SECI tenders for three years, citing allegations of submitting “fake documents.” A subsequent show-cause notice on November 13 sought explanations regarding a fraudulent bank guarantee submitted by its subsidiary.
In a stock exchange filing on December 3, Reliance Power clarified that SECI’s withdrawal of the notice was based on legal proceedings. However, SECI reserved the right to take further action if required.
Stock and Financial Performance
Reliance Power’s stock has risen 72% year-to-date, outperforming the Nifty 50’s 13% gain during the same period. Despite this, the stock faced a correction in recent months, falling over 12% in October and 9% in November.
Financially, the company reported a consolidated net profit of ₹2,878.2 crore in Q2FY25, marking a substantial recovery from a loss of ₹237.76 crore in the same quarter last year. However, its total income for the September quarter dipped to ₹1,962.77 crore from ₹2,116.37 crore year-on-year.
This news of SECI’s withdrawal brings a positive sentiment for investors, likely aiding the stock’s recovery trajectory.
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Source: Moneycontrol
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