On Wednesday, December 4, Reliance Power’s stock witnessed a sharp increase, reaching the upper circuit limit of 5%.
This rise followed the Solar Energy Corporation of India (SECI) lifting a ban imposed on the company.
By 11 am, the stock was trading at ₹41.09, marking a year-to-date gain of nearly 72%. In comparison, the Nifty 50 index has risen only 13% this year.
SECI Ban Withdrawal and Legal Issues
Despite strong yearly performance, Reliance Power’s stock faced setbacks in recent months, dropping 12% in October and 9% in November.
However, on December 3, the company announced that SECI had withdrawn the ban notice immediately.
The decision allows Reliance Power and its subsidiaries (except Reliance NU BESS, formerly Maharashtra Energy Generation) to participate in SECI’s tenders.
This reversal came after legal proceedings, though SECI retains the right to take further action if needed.
SECI, a government entity responsible for renewable energy projects, had banned Reliance Power
and Reliance NU BESS from tenders for three years on November 6, citing “fake documents” as the reason.
A show-cause notice was issued on November 13 to Reliance NU BESS, asking why criminal action should not be pursued over alleged fake bank guarantees.
Financial Performance Update
In the September quarter, Reliance Power reported a massive increase in consolidated net profit, which soared to ₹2,878.2 crore compared to ₹237.76 crore in the same quarter last year.
However, total income during this period fell to ₹1,962.77 crore, down from ₹2,116.37 crore in the previous quarter.
This combination of a lifted ban and strong profit growth positions Reliance Power for renewed participation in India’s renewable energy sector.
