Tue Sep 24 07:11:39 UTC 2024: ## Reliance Power Shares Surge 5% on Preferential Allotment News
**Mumbai, India** – Reliance Power shares soared 5% to hit the upper circuit limit in morning trades on Tuesday, pushing the stock price to ₹40.06. The company’s share price has been on a steady climb, rising over 20% in the last five trading sessions and a whopping 111% in the past year, delivering multibagger returns to investors.
The surge is attributed to a recent announcement of a ₹1525 crore preferential allotment of equity shares approved by the company’s board. This move is intended to accelerate Reliance Power’s growth plans, benefitting over 40 lakh shareholders.
The preferential issue will see significant investment from Reliance Infrastructure Limited, the company’s promoter, boosting their equity holding by over ₹600 crore. Other investors include Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services Private Limited.
The infusion of capital is expected to strengthen Reliance Power’s position in the renewable energy sector. The company plans to utilize the proceeds for business expansion, investments in subsidiaries and joint ventures, debt reduction, and general corporate purposes.
The preferential allotment is expected to increase Reliance Power’s net worth from over ₹11,155 crore to over ₹12,680 crore, while also ensuring the company remains debt-free.
**Disclaimer:** The information presented here is based on publicly available sources and should not be considered financial advice. Investors are advised to consult with certified financial experts before making any investment decisions.
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