Reliance Power share price: Reliance Power to raise long-term debt of up to Rs 1,200 crore; shares jump 10%
Reliance Power along with its subsidiary entered into a Memorandum of Understanding (MoU) with Varde Partners for availing debt of up to Rs 1,200 crore. The company, in an exchange filing, said it would use the fund “for settlement and discharge and/or acquisition and restructuring of certain financial debt.”
“The drawdown of the debt will be subject to finalization and execution of binding documents and all requisite approvals including regulatory approvals as per applicable rules/ laws/ regulations,” the company added.
Shares of the company extended their gains today to hit an intraday high of Rs 23.30. The stock had climbed to its 52-week high of Rs 23.75 in the previous session.
As of 10:42 am, Reliance Power was trading 9.91 per cent up at Rs 23.30. On NSE, the stock was up 9.43 per cent at Rs 23.20.
Market capitalisation (m-cap) of RPower rose to Rs 7,854.29 crore on BSE. A total of 184.33 lakh shares of the firm changed hands amounting to a turnover of Rs 42.14 crore.
Meanwhile, Business Today reported last week that foreign institutional investors (FIIs) were returning to the Indian equity markets. And, Reliance Power was among the 32 listed stocks in which FIIs had increased their stake by at least 3 per cent in the last one year.
Usually, market watchers consider FII buying as a bullish signal for a stock selection, and in the past, stocks, where FII has increased their stake, have performed well and provided better returns to the investors.
Some investors suggest FII buying as a good parameter for stock selection. Although, it is not the only parameter as many other factors are also required to be analysed, for instance, the company’s financial performance, management vision, capability and competitive advantage.
Earlier in July this year, RPower shareholders had turned down a special resolution to monetise its assets during the annual general meeting (AGM). All special resolutions were required to be approved by 75 per cent or more votes of shareholders.
