As investors enjoy a string of good news, shares of Reliance Infrastructure (RELINFRA) and Reliance Power (RPOWER) have delivered impressive gains in the past. As of Monday, September 30, shares of Reliance Infrastructure and Reliance Power have grown 55.8 percent and 56.5 percent in the past two weeks, according to exchange data. In other words, both stocks contributed to a 56 percent increase in the wealth of their investors. Reliance Infrastructure (popularly known as RInfra) and Reliance Power are part of the Reliance Group, which is headed by business magnate Anil Ambani.
What is special about the rally in both stocks?
Shares of Reliance Infrastructure have surged to Rs 336 from disproportionate levels of Rs 215 in a fortnight while the Reliance power stock has touched around Rs 49 from Rs 31.
Also, Reliance Power hit the regional limit of 5 percent for nine consecutive trading sessions during this period.
The rally reportedly benefited 47 lakh small investors, with 7 lakh investors in Reliance Infra and 40 lakh in Reliance Power.
What has fueled the rise of Reliance Group stock?
Many analysts said that news developments related to the group’s successful transition from debt to debt-free status have revived investor interest and confidence in both Reliance Power and Reliance Infra.
UPDATE: Reliance Infra, Reliance Power investors enjoy debt repayment milestone
This month, Reliance Power announced that it has achieved zero debt while Reliance Infra reduced its debt obligations by 87 percent to Rs 475 crore.
Additionally, in the past few weeks, both companies have announced fundraising plans that bolster investors’ confidence in their bright future prospects.
Reliance Infrastructure plans to raise Rs 3,000 crore and Reliance Power Rs 1,500 crore through a special share issue.