Reliance Power rose 1.03% to Rs 63.75 at 13:05 IST on BSE after the company received favorable order from the electricity regulator in connection with the petition filed by Sasan Power, the company's wholly owned subsidiary.
The company made the announcement during trading hours today, 24 February 2014.
Meanwhile, the S&P BSE Sensex was up 50.40 points or 024% at 20,751.15.
On BSE, so far 7.65 lakh shares were traded in the counter as against average daily volume of 27.15 lakh shares in the past one quarter.
The stock hit a high of Rs 64.45 and a low of Rs 63.60 so far during the day. The stock had hit a 52-week high of Rs 83.10 on 21 May 2013. The stock had hit a record low of Rs 58.55 on 28 March 2013.
The stock had underperformed the market over the past one month till 21 February 2014, sliding 7.41% compared with Sensex's 2.59% fall. The scrip had also underperformed the market in past one quarter, declining 10.88% as against Sensex's 2.33% rise.
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The large-cap company has equity capital of Rs 2805.13 crore. Face value per share is 10.
Commenting on the order of the CERC on Reliance Power's 3,960 megawatts (MW) Sasan Ultra Mega Power Project (UMPP), a Reliance Power (RPower) Spokesperson said, "Reliance Power welcomes the order of the Hon'ble CERC recognising that the unprecedented and unforeseen foreign exchange rate variations beyond the control of the company and beyond the normal expectations may need to be considered for quantification and compensation by the procurers appropriately".
The Hon'ble Commission has observed that the rate quoted by the company is the lowest not only amongst all supercritical/contemporary power projects, but also compared to the cost of generation of hydro power projects generally, RPower said. Considering the extremely competitive rate at which the procurers are getting power from the company, there may be a case for the procurers to share a part of the burden on account of depreciation of the rupee.
RPower said that the management of the company is grateful to the Hon'ble Commission for specifying a fast track 8 week schedule to examine relevant facts, before giving any final directions in this regard under Section 79(1)(b) of the Electricity Act in the interest of the project as well as consumers of the procurer states.
The Sasan UMPP is the world's largest integrated coal mine and power project having six units of 660 MW each. Two units have already been commissioned and the third unit has achieved boiler-light-up. Also, coal production has already commenced from the 20 million tonnes per annum capacity Moher and Moher-Amlohri coal mines.
RPower's consolidated net profit rose 0.6% to Rs 267.22 crore on 6.2% decline in net sales to Rs 1372.61 crore in Q3 December 2013 over Q3 December 2012.
Reliance Power, a part Reliance Group, is India's leading private sector power generation company.
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