Shares of Anil Ambani's Reliance Power are bullish ahead of a key meeting this week.

Anil Ambani-led Reliance Power (RPower) has rallied nearly 55% in the past nine trading sessions. From a closing price of Rs 31.40 on September 17, the stock has hit consecutive upper circuits, reaching Rs 48.66 in the latest session.

The significant rally comes ahead of a board meeting scheduled for Thursday, October 3, where the company is expected to consider a fundraising proposal.

Reliance Power share rally in the stock market

On Monday, September 30, shares of Reliance Power witnessed huge volatility, despite falling to Rs 46.25 per share from the previous close of Rs 46.35. Shares initially fell by nearly 5% to Rs. came to 44.21. However, by afternoon, it recouped the losses and once again reached the upper circuit at Rs 48.66 on the NSE.

Till 1 PM, approximately 20.62 crore shares were traded on the NSE, while around 3.57 crore shares changed hands on the BSE, indicating high investor interest, an ET Now report said.

Why is Reliance Power share (RPower) rising?

• Guaranteed settlement of Rs 3,872 crore: RPower announced that it has acquired Vidarbha Industries Power (VIPL) for Rs. 3,872 crore guarantee has been fulfilled. The decision led to the release of all corporate guarantees, liabilities and undertakings related to outstanding loans of Rs 3,872.04 crore.
• Resolution of Disputes: RPower also resolved all disputes including reconstruction of CFM assets, mortgage of 100% of VIPL shares in favor of CFM in lieu of release and discharge of corporate guarantee given by Reliance Power.
• Zero Debt Status: Another big announcement of RPower is that the company has secured zero loans from banks and financial institutions. The company's consolidated net worth stood at Rs 11,155 crore at the end of the first quarter of FY25.
• Announcement of Board Meeting: Additionally, on Friday, September 27, RPower announced a board meeting to discuss the fundraising proposal.

This combination of debt reduction, financial stability and the possibility of fresh fundraising has led to a sustained upward movement in Reliance Power's share price, even in volatile markets.

Reliance Power's board on Monday approved the priority issue, with over Rs 600 crore coming from its promoter Reliance Infrastructure and the remaining Rs 900 crore from Authom Investment and Infrastructure Ltd and Sanatan Financial Advisory Services.

The preference issue will raise Reliance Power's net worth to Rs. 11,155 crore from Rs. 12,680 crore, according to the company's share marketing filing, while maintaining a zero-bank-loan position.

(with inputs from PTI)