Power Sector Push: Reliance Infrastructure Increases Stake in Subsidiary with Rs 315.15 Crore Equity Share Acquisition
The company has delivered a 1-year return of 40.78 per cent and a 3-year return of 116.04 per cent.
Reliance Infrastructure Limited, a prominent player in the infrastructure and utility space, has increased its equity stake in Reliance Power Limited by subscribing to 9.55 crore equity shares. This strategic move, valued at Rs 315.15 crore, was executed through the exercise of rights attached to warrants that were previously subscribed on a preferential basis. As a result, Reliance Infrastructure's shareholding in Reliance Power has risen from 23.18 per cent to 24.90 per cent.
Reliance Power Limited, engaged in the power generation business, reported a consolidated income of Rs 6,191.39 crore for the nine-month period ending December 31, 2024. Over the last three financial years, the company has maintained consistent performance, with consolidated turnovers of Rs 7,892.60 crore in FY 2024, Rs 7,542.69 crore in FY 2023, and Rs 7,503.11 crore in FY 2022. This transaction reflects Reliance Infrastructure’s intent to strengthen its presence in the power sector, aligning with its long-term growth strategy in core infrastructure and utility verticals.
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As of May 7, 2025, Reliance Infrastructure's share price stands at Rs 240.45. The stock has touched a 52-week high of Rs 336.85 and a low of Rs 149.95. The company has delivered a 1-year return of 40.78 per cent and a 3-year return of 116.04 per cent, which may interest investors looking at mid-cap or potential multibagger opportunities. With a market capitalisation of Rs 9,374 crore and a Price-Earnings (PE) Ratio of 37.05, the stock remains actively tracked in the Indian stock market.
Reliance Infrastructure operates through Special Purpose Vehicles (SPVs) to develop and manage large-scale infrastructure projects across segments like power generation, transmission, metro rail, roads, airports, and defence. The company plays a crucial role in utility services and infrastructure development across India.
Among major public shareholders are Authum Investment & Infrastructure Limited (10.89 per cent), Mathew Cyriac (3.27 per cent), Florintree Insurtech LLP (2.18 per cent), Universal Trustees Pvt Ltd (1.22 per cent), and Ketan Mohanlal Kakrecha (1.14 per cent), highlighting strong institutional interest.
This acquisition could serve as a strategic enabler for future growth and improved financial performance, especially with consistent Quarterly Results and increasing investor focus on the power and infrastructure sectors.
Disclaimer: The article is for informational purposes only and not investment advice.