The stock had soared over 60 percent in the past month, driven by strong investor sentiment following the announcement that the Anil Ambani-led company had become debt-free.

Reliance Power shares hit a 5 percent lower circuit for the third session in a row amid profit-booking, following a strong 60 perent surge last month after the company declared itself debt-free.

Anil Ambani-run Reliance Group announced a significant partnership with Druk Holding and Investments Ltd. (DHI), the investment arm of the Royal Government of Bhutan, to enhance the renewable energy landscape in the country.

Reliance Power shares hit a 5 percent lower circuit amid market sell-off. The company on October 3 announced a Rs 4,200 crore Foreign Currency Convertible Bonds (FCCBs) issuance.

The stock was hitting 5% upper circuit for the past 12 sessions, while it maintained an uptrend since September 12, rising 72% during the same period.

The board’s decision allows Reliance Power to issue FCCBs with a 10-year tenure at an ultra-low annual interest rate of 5 percent. These bonds will be unsecured and convertible into around 82.30 crore equity shares at a conversion price of Rs 51 per share, including a Rs 41 premium.

Reliance Power share price was locked in the 5% lower circuit today after scaling a one-year high on Friday. The stock has risen 80% in the last one month and delivered multibagger gains of 170% in the last one year.

Reliance Power recently announced that it has cleared all its debt with banks and financial institutions, achieving zero debt as of June 30. Its net worth stands at Rs 11,155 crore on a consolidated basis.