Thursday, Nov 20 — Shares of Reliance Power were trading nearly 3% higher in early deals on Thursday after the company announced a key governance move aimed at strengthening strategic oversight across its operations.
The stock opened firm and touched ₹41.05, gaining 2.80% by 9:32 AM, compared with the previous close of ₹39.93.
Reliance Power on Wednesday said its board of directors has approved the formation of a Board of Management (BoM) — a new supervisory layer comprising the CEO, key managerial personnel, and senior business leaders. According to the company, the BoM is designed to improve governance, enhance oversight, and build a more agile operational structure.
In its regulatory filing, the company said the initiative aligns with its long-term goal of strengthening organisational capability, particularly in growth areas led through its subsidiary, Reliance NU Energies. Reliance Power added that the move reflects its commitment to adopting best-in-class governance practices.
Alongside this update, the company also notified exchanges of a post-ballot process as it seeks shareholder approval for three key resolutions — the issuance of $600 million in foreign currency convertible bonds (FCCBs), the appointment of Arup Ashok Gupta as a non-executive non-independent director, and the appointment of Zohra Chatterji as an independent director for five years.
The proposed FCCB issuance, earlier cleared by the board on November 10, is intended to support future growth plans and may be executed via an international offering on a private placement basis, subject to regulatory approvals.
Reliance Power reported a strong turnaround in its September quarter earnings. The company posted a consolidated net profit of ₹87.32 crore, compared to a loss of ₹352 crore a year earlier. Revenue grew 12.17% year-on-year to ₹1,974.03 crore, while EBITDA rose sharply by 64% YoY to ₹618 crore, supported by improved operational performance.
The stock had closed marginally lower on Wednesday, but the announcement made after market hours appears to have boosted sentiment, with shares now trading higher in early Thursday action.
