Reliance Power shares surged 5% after the company announced a preferential issue of equity shares worth Rs 1,524.60 crore, aimed at strengthening its financial position and expanding into renewable energy.

Reliance Power shares have shown strong performance across multiple time frames, delivering a 10.64% return in the past month and a 38.22% increase over six months. Year-to-date, the stock has surged 59.

Reliance Infrastructure would hold 24.88 per cent and the aggregate shareholding of the promoter group would be 24.95 per cent of the paid-up equity share capital of the company post the allotment.

Reliance Power’s board of directors approved the issue of preferential shares to raise ₹1,524.60 crore, the company said in an exchange filing on Monday.

Reliance Power share price was locked in the 5 per cent upper circuit at Rs 40.06 per share on the BSE. The stock also reached its 52-week high on Tuesday

Reliance Power seeks shareholder approval to raise Rs 1,525 crore through a preferential issue, with promoters investing Rs 600 crore. The proceeds will be used for business expansion, debt reduction,

The preferential allotment will increase Reliance Power's net worth from ₹11,155 Crore to above ₹12,680 Crore, according to a filing.

The preferential allotment would enhance Reliance Power's net worth from ₹11,155 crore to over ₹12,680 crore, the company said in an exchange filing.