New Delhi: Shares of companies of Anil Ambani, younger brother of Asia's richest man Mukesh Ambani, are showing signs of turning around. Shares of Anil Ambani's Reliance Power (RPower Shares) have been in an upper circuit for the second consecutive day. On Wednesday, it reached Rs 32.97 (Reliance Power Share Price) with an upper circuit of 5 percent. It has given a return of 42 percent in the last 6 months and 72 percent in one year.

Why Reliance Power shares are rising

In fact, Reliance Power on September 17 announced the settlement of a huge debt of Rs 3,872.04 crore related to its former subsidiary Vidarbha Industries Power Limited (VIPL). According to the exchange filing, VIPL's contribution to RPower's consolidated revenue is just 0.11 per cent (Rs 8.73 crore).

VIPL had a negative net worth of Rs 3,086.29 crore in the last financial year. It will no longer be a subsidiary of RPower from September 19, 2024. Its positive effect will be seen on the balance sheet of RPower. After this announcement, the company's shares have seen a big jump.

Reliance Power has got a big contract

Reliance Power is rapidly moving towards renewable energy. It has secured a contract for 500 MW/1,000 MWh battery energy storage system (BESS) on September 11. The company has also received an order from Solar Energy Corporation of India (SECI). It conducted e-reverse auction (ERA) to increase the country's energy storage capacity.

In this auction, Reliance Power had bid a fee of Rs 3.819 lakh per megawatt per month. Other bidders included Avaada Energy, Acme Cleantech, Gensol and IndiGrid.