RattanIndia Power shares extend gains, jump 7% to hit one-year high levels today; what's pushing this stock up?

Shares of RattanIndia Power Ltd continued to rise for the fourth straight session in Tuesday's trade. The strong upward move in the share price came after RattanIndia Power raised a loan of Rs 1,114 crore. The company, in an exchange filing, said that it has refinanced its senior debt in a Rs 1,114 crore transaction led by Kotak Mahindra Bank. The stock today jumped 7.13 per cent to hit its 52-week high of Rs 6.01 over its previous close of Rs 5.61. Also, the counter has turned multibagger by gaining 113.12 per cent from its one-year low price of Rs 2.82, hit on March 29, 2023.

The scrip was last seen trading 2.32 per cent higher at Rs 5.74. Around 2.18 crore shares changed hands today on BSE, which was more than the two-week average volume of 1.37 crore shares. Turnover on the counter stood at Rs 12.50 crore, commanding a market capitalisation (m-cap) of Rs 3,077.07 crore.

"The company had earlier concluded a landmark resolution with erstwhile lenders for 1,350 MW Amravati Thermal Power Plant in December 2019, whereby the loans from Indian banks and financial institutions were taken over by reputed international financial institutions including Goldman Sachs and Varde Partners through Aditya Birla ARC along with 15 per cent equity stake each to both sets of lenders (outgoing and incoming)," it stated.

"Since the earlier resolution of December 2019, RattanIndia Power has repaid an amount of Rs 3,371 crore over last three and a half years to these international financial institutions out of which Rs 988 crore was prepayment. It has raised fresh loan of Rs 1,114 crores in a transaction led by Kotak Mahindra Bank and has fully repaid the balance senior debt to these foreign financial institutions," the company further said.

RattanIndia Power also mentioned that its operational performance remains strong with average EBITDA exceeding Rs 1,000 crore per annum since commissioning over the last 8 years.

Rajiv Rattan, Chairman of RattanIndia Power, said, "The company has built world class plants in the state of Maharashtra. Amravati Power Plant has been consistently performing for the last 8 years with robust cash flows. The refinance transaction is a strong testimony to its excellent operating performance."

As of March 2023 quarter, promoters held 44.06 per cent in the company and public owned the rest (55.94 per cent). On technical setup, support on the counter could be seen at Rs 4.20.

AR Ramachandran from Tips2trades said, "RattanIndia Power is bullish but also overbought on the daily charts. Investors should book profits at current levels as a daily close below the support of Rs 4.20 could lead to 2.85 in the coming weeks."

Vaibhav Kaushik, Research Analyst at GCL Broking, said, "RattanIndia Power has given strong break out above Rs 4 levels. The stock is now ready to touch levels up to Rs 10. Keep strict stop loss placed at Rs 3.70."

VLA Ambala, Research Analyst at Stock Market Today, said, "The stock is still bullish. So, investors can hold it for more targets between Rs 6 and Rs 10 with a strict stop loss placed at 3.80.

RattanIndia Power is a private power generation company with installed capacity of 2,700 MW thermal power plants at Amravati and Nashik (1,350 MW at each location) in Maharashtra. It has accumulative investments worth Rs 18,615 crore.

Meanwhile, Indian equity benchmarks rose in early deals today, led by gains across all sectors.

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