Mon Sep 23 09:10:56 UTC 2024: ## Reliance Power Stock Surges Over 20% on Fundraising Plans

**Mumbai, India** – Shares of Anil Ambani-owned Reliance Power have skyrocketed over 20% since the company announced plans to raise long-term resources. The stock hit a 52-week high of Rs 38.15 per share on the National Stock Exchange (NSE) on Friday, September 23rd, 2024. The surge follows a board meeting where the company is expected to approve the fundraising proposal.

The company plans to raise funds through various methods including equity shares, equity-linked securities, warrants convertible into equity shares, and other instruments. Reliance Power will be seeking funds both from domestic and global markets.

The rally comes on the heels of the company’s recent positive developments. Reliance Power successfully settled all disputes with CFM Asset Reconstruction Company Private Limited, resulting in the release of its corporate guarantee and obligations related to a Rs 3,872.04 crore debt held by subsidiary Vidarbha Industries Power Limited (VIPL).

Furthermore, the company has participated in a request for selection to set up a 500 MW/1000 MWh Battery Energy Storage System (BESS) invited by the Solar Energy Corporation of India (SECI).

The company’s market capitalization has jumped to Rs 15,328 crore, reflecting strong investor sentiment. This upward trend is further fueled by the Indian government’s commitment to increase coal-based thermal power capacity by approximately 80 GW by 2031-32 to meet the rising power demand.

Analysts are optimistic about Reliance Power’s future prospects, predicting further upside potential in the stock. Sumeet Bagadia, executive director at Choice Broking, believes the stock could become highly bullish if it breaks above Rs 40 per share on a decisive basis.

Reliance Power shareholders are advised to hold the stock with a stop loss at Rs 35 apiece, targeting Rs 45 and Rs 50. Fresh investors are encouraged to buy shares with a strict stop loss at Rs 35, aiming for the same short-term targets.

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