RPower gains as board approves scheme of amalgamation

Reliance Power rose 1.75% to Rs 69.90 at 9:57 IST on BSE after the company said its board of directors at a meeting held on 30 July 2013, considered and approved the Scheme of Amalgamation of Reliance Clean Power with Reliance Power.

The announcement was made after market hours on Friday, 23 August 2013.

Meanwhile, the S&P BSE Sensex was up 164.20 points or 0.89% at 18,683.64.

On BSE, 4.04 lakh shares were traded in the counter as against average daily volume of 26.53 lakh shares in the past one quarter.

The stock hit a high of Rs 70.40 and a low of Rs 69.35 so far during the day. The stock had hit a 52-week high of Rs 106.70 on 15 October 2012. 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 23 August 2013, sliding 14.18% compared with the Sensex's 8.78% fall. The scrip had, however, outperformed the market in past one quarter, declining 5.44% as against Sensex's 5.87% fall.

The large-cap company has equity capital of Rs 2805.13 crore. Face value per share is 10.

Reliance Clean Power is a step down subsidiary of Reliance Power (RPower). At present, the entire existing paid-up capital of Reliance Clean Power is held by RPower including through its wholly owned subsidiary, Reliance CleanGen. Pursuant to the Scheme, no shares are proposed to be issued to RPower as the entire share capital of Reliance Clean Power would be held by RPower on or before the effective date. Further RPower has informed that, the company will not be filing any application with the High Court.

RPower's consolidated net profit rose 0.2% to Rs 240.06 crore on 1.1% decline in net sales to Rs 1122.85 crore in Q1 June 2013 over Q1 June 2012.

Reliance Power, a part Reliance Group, is India's leading private sector power generation company.

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