Anil Ambani owned Reliance Power hits 5% upper circuit after SECI lifts debarment notice

Reliance Power shares surged by 5 per cent to hit the upper circuit at Rs 41.07 on Wednesday, following an announcement that Solar Energy Corporation of India Limited (SECI) had withdrawn its debarment notice.

This move reinstates the company's eligibility to participate in all SECI tenders, a development announced through a press release.

The debarment, originally issued on November 6, had barred Reliance Power and its subsidiary, Reliance NU BESS Limited, from participating in SECI tenders for three years. However, the notice was revoked after legal proceedings. While SECI retains the right to take action under applicable laws, the withdrawal marks a significant victory for Reliance Power.

This positive development has bolstered investor sentiment.

On Tuesday, the stock closed at Rs 39.12, gaining 1 per cent, and has delivered robust returns of 63 per cent in 2024 and 134 per cent over the past 2 years. The company's market capitalization now stands at Rs 16,505.73 crore.

Analysts view the removal of the debarment as a potential catalyst for further growth, given the significant opportunities in renewable energy projects through SECI tenders.

With a price-to-earnings ratio of 13.25 and a beta of 2.12, Reliance Power remains a high-risk, high-reward play in India's energy sector.