Rel Power's IPO plan catapults power stocks

The shares of power generating and distribution companies hogged the limelight on Dalal Street on Monday with Reliance Energy, NTPC and GVK Power closing at all-time highs.

The rally was attributed to the proposed public issue of Reliance Power. The unlisted power arm of Anil Ambani is planning additional capacity worth 25,000 megawatts through new projects.

Most of the frontline power stocks such as Reliance Energy, Tata Power, NTPC, CESC, Gujarat Industrial Power and Neyveli Lignite gained in the range of 3 per cent to 12 per cent on the Bombay Stock Exchange.

While Reliance Energy (Rs 1,385), NTPC (Rs 207.90) and GVK Power and Infrastructure (Rs 709) closed at lifetime highs, Tata Power, CESC, Torrent Power and Neyveli Lignite hovered at their all-time highs.

Reliance Energy was the largest gainer, appreciating by 11.94 per cent to Rs 1,349.40 on the BSE against the previous day's close of Rs 1,205.50. GVK Power and Infrastructure was the second biggest gainer, up 7 per cent to close at Rs 692.20 (Rs 648). Tata Power and NTPC were up by 6.5 per cent each on Monday.

Tata Power gained by Rs 55.60 to Rs 910.80 (Rs 852.20) and NTPC was up by Rs 12.55 to Rs 206 (Rs 193.45). The trading volumes on the power counters saw a sharp rise, as 6.89 crore shares changed hands on BSE and NSE compared with 5.44 crore shares last Friday.

The trading volumes in NTPC, Torrent Power, GVK Power and CESC increased by over 100 per cent each, while those in Reliance Energy, Tata Power, Gujarat Industrial Power and Suryachakra Power increased by over 50 per cent each.