Reliance Power shares hit 5% upper circuit for 11th consecutive day, touch 7-year high

Reliance Power shares continued their upward momentum on Thursday, hitting the 5% upper circuit for the 11th straight session at ₹53.65 apiece—their highest level since January 2018. 

The stock has surged 71% during this period, fueled by the company’s transition to being nearly debt-free and aggressive expansion into the renewable and green energy sectors.

As a part of its growth plans, the company on 2 October announced its foray into Bhutan to develop solar and hydroelectric power projects.

The Anil Ambani-run Reliance Group announced a significant partnership with Druk Holding and Investments Ltd. (DHI), the investment arm of the Royal Government of Bhutan, to enhance the renewable energy landscape in the country.

This collaboration aims to develop major solar and hydropower projects, including a 500 MW solar power plant and a 770 MW hydroelectric project. To oversee these operations, the group has established a new company, Reliance Enterprises, which focuses on clean energy investments and smart energy solutions in Bhutan.

The 500 MW solar project, located in Gelephu Mindfulness City will be executed in two phases over the next two years, representing the largest solar installation in Bhutan upon completion.

Simultaneously, the Chamkharchhu-1 hydro project, classified as a run-of-the-river project, will further bolster Bhutan's existing power generation capacity. This partnership marks the largest foreign direct investment (FDI) by an Indian private company in Bhutan's renewable energy sector, the company said in its regulatory filing.

Reliance Enterprises is a joint venture between Reliance Infrastructure and Reliance Power, dedicated exclusively to promoting and investing in Bhutan's renewable energy sector.

Stellar recovery

Reliance Infrastructure and Reliance Power shares staged a strong recovery in September, closing the month with gains exceeding 60%.

Anil Ambani-run Reliance Group is a major conglomerate with a diverse presence across multiple sectors of the economy. Among its key ventures is Reliance Power, a leading power generation company in India with a total installed capacity of 5,340 MW, including the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh—currently the largest integrated thermal power plant in the world.

Meanwhile, another prominent company in the Anil Ambai group - Reliance Infrastructure is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defence manufacturing and has played a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro and various airport developments.

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