Reliance Power’s shares surged by 5 percent to reach Rs 41.09 on December 4, after the Solar Energy Corporation of India (SECI) withdrew a debarment notice. Year-to-date, Reliance Power has seen a remarkable 72 percent increase, far surpassing the Nifty 50’s 13 percent rise during the same period. However, the stock experienced a decline of over 12 percent in October and 9 percent in November.
Reliance Power got relief from High Court
In a filing with the exchange on December 3, Reliance Power announced that SECI’s debarment notice had been immediately lifted. This decision allows the company and its subsidiaries, with the exception of Reliance NU BESS (formerly known as Maharashtra Energy Generation), to participate in SECI tenders. The filing emphasized that this action followed legal proceedings and does not prevent SECI from taking further steps if necessary.
SECI, the agency responsible for renewable energy projects, had previously banned Reliance Power and its subsidiary Reliance NU BESS from tender participation for three years on November 6 due to allegations of submitting false documents. A week later, on November 13, SECI issued a show-cause notice to Reliance Power, requesting an explanation as to why criminal proceedings should not be initiated after its unit submitted a fake bank guarantee.
In Q2FY25, Reliance Power reported a consolidated net profit of Rs 2,878.2 crore, marking a significant turnaround from a net loss of Rs 237.76 crore in the same period the previous year. However, the company’s total income decreased to Rs 1,962.77 crore in the September quarter, down from Rs 2,116.37 crore in the corresponding period last year.
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