Synopsis:
Reliance Power gained 4% after approving a new Board of Management to enhance governance and agility, while its growing focus on renewables, major bids in solar and BESS, and strong 5,305 MW portfolio boosted investor sentiment.
This company has been established to develop, construct and operate power projects both in India as well as internationally, and its subsidiaries have a large portfolio of power generation capacity is now in focus after the board approved the creation of the Board of Management (BOM).
With market capitalization of Rs. 16,688 per share, the shares of Reliance Power Ltd are currently trading at Rs. 40.4 per share, increasing 4% in today’s market session making a high of Rs. 41.75, from its previous close of Rs. 39.93 per share.
What you should know about
Reliance Power saw its share price rise by more than 4% after its board approved the creation of a Board of Management (BOM). The new governance structure is designed to enhance agility, transparency, and strategic oversight within the company. The BOM will comprise the CEO, key managerial personnel, and senior business leaders who will work closely with the board of directors to execute long-term plans and strengthen operational efficiency.
The establishment of the BOM underscores Reliance Power’s focus on adopting global best practices in governance. This framework will create a more accountable and decisive management structure, facilitating faster decision-making and effective monitoring of business performance. The move is expected to align management actions more closely with shareholder interests, ensuring strategic clarity and long-term value creation for stakeholders.
Growth Through Renewables and Battery Storage
A key highlight of Reliance Power’s growth strategy is its renewable energy expansion through its subsidiary, Reliance NU Energies. The subsidiary has emerged as a prominent bidder for upcoming green energy projects, with bids covering up to 4 GW of solar capacity and 6.5 GW of battery energy storage systems (BESS). These initiatives align with India’s ambitious renewable energy targets and aim to position the company as a leading player in the clean energy transition.
Reliance Power’s total operating portfolio stands at 5,305 MW, driven primarily by the Sasan Ultra Mega Power Project, which contributes 3,960 MW. Sasan has consistently been among India’s top-performing coal-based plants for the past seven years, offering stable generation and efficiency.
The company currently delivers modest returns with a ROCE of 6.15% and a negative ROE of –1.08%, while maintaining a debt-to-equity ratio of 0.92. The stock trades close to its intrinsic value at 1.02 times book value, and operational efficiency has improved as debtor days reduced from 93.2 to 73.2 days.
Written by Manideep Appana
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