Reliance Power Stock Soars on Record Surge After ₹2,000 Crore Bhutan Solar Plant Announcement

May, 24 2025

Reliance Power’s Stock Rally Sends Shockwaves Through the Market

When Reliance Power’s stock jumped 19% on May 23, 2025, reaching ₹52.94, it wasn’t just another day on the exchange. This was the company’s sharpest upward move in more than a year, catching even seasoned investors off guard. What’s behind the buzz? It all comes down to a massive ₹2,000 crore partnership to supercharge Bhutan’s solar ambitions, with Reliance Power right at the center.

Reliance Power, led by Anil Ambani, teamed up with Druk Holding and Investments Ltd. (DHI), Bhutan’s heavyweight state-owned investment entity. The plan: create Bhutan’s single biggest solar installation to date—a 500 MW plant—split evenly between both players, in a true 50:50 joint venture. This isn’t just another project on paper. The deal runs under a Build-Own-Operate (BOO) system, which means the two companies carry the project from blueprint to reality, holding ownership and operating it for the long haul. For Bhutan, this is a historic leap: the largest private-sector foreign direct investment the country has ever seen for renewable energy.

There’s another layer to the partnership, too. Reliance Power signed a letter of intent for a long-term Power Purchase Agreement (PPA) with Green Digital Pvt Ltd (GDL), which is DHI’s renewable energy subsidiary. PPAs like these give infrastructure investors the kind of predictable, stable revenue they love. In an industry known for its risks and upfront costs, that’s huge.

Market Reactions and Analyst Warnings

The market responded with instant excitement. The company’s value—or market capitalization—shot past ₹21,000 crore as traders rushed to pile in. The mood was electric across finance circles; volumes soared, and social media was awash with hot takes.

But some voices advised caution. Analysts were quick to remind investors of Reliance Power’s rocky past. Historically, its price-to-earnings (P/E) ratios swung wildly, ranging from negative double digits to triple-digit highs. This type of volatility isn’t for the faint-hearted. The company’s fortunes have turned for now, with its P/E ratio sitting at 6.08x as of May 2025—a healthy spot compared to its wild ride over the years. Still, professionals warn this is a high-risk, high-reward setup. Retail investors should weigh their risk tolerance carefully before jumping in.

What’s different this time is the scale and structure of the project. Solar is hot—no pun intended—in South Asia, and the fact that Reliance Power is locking in a long-term buyer for all that power brings a level of certainty previously missing from its playbook. Still, the memory of the stock’s past volatility lingers. Some market watchers point out that global economic shocks and market sentiment shifts could easily swing the price again. Plus, executing a massive infrastructure project in unfamiliar regulatory territory, like Bhutan, isn’t a cakewalk.

Yet, this risk is exactly what’s drawing aggressive investors. The prospect of Bhutan’s unprecedented renewable investment, partnered with a major Indian player, has ignited speculation. Those who like their investments safe are staying on the sidelines, but risk-takers see this as an opportunity for real upside. The next moves, both in the stock and on the ground in Bhutan, will be watched closely by everyone from armchair traders to institutional fund managers.