Anil Ambani’s Reliance Power Under Fire: Stock Plunges After SECI Ban

Reliance Power Faces Setback: Anil Ambani’s Company Banned from Bidding, Shares Hit Lower Circuit

Reliance Power, owned by Anil Ambani, saw its stock price fall by 5% as it hit the lower circuit today (November 8, 2024), following new allegations from the Solar Energy Corporation of India (SECI). The company’s stock price dropped by 2.19 INR, reaching 41.58 INR at the market opening.

SECI’s Ban on Reliance Power

SECI, a government organization responsible for renewable energy projects, has banned Reliance Power and its subsidiaries from participating in any future tenders for the next three years. This decision comes after SECI discovered that Reliance Power had submitted a fake bank guarantee in a tender for a 2000 MW standalone battery energy storage system in June 2024. SECI had to cancel the tender process due to this issue.

A Shock After Good News

Just a day before, news came that Reliance Power’s subsidiary, Roza Power, had cleared its debts, leading to a surge in its stock. However, the new allegations from SECI have overshadowed that positive news. Earlier, the Securities and Exchange Board of India (SEBI) had also banned Anil Ambani from participating in the securities market for five years.

Reliance Power Share Performance

In the past five days, Reliance Power’s stock has gained 0.56%. However, in the last month, the stock has dropped by 9.57%. Over the last six months, the stock has given investors a return of more than 61%. In 2024, Reliance Power shares have returned 73%. Over the last year, investors who bought the stock have seen their investments double.

But with the new ban and allegations, the stock opened with a 5% drop today, marking a sharp turn after two consecutive days of price surges.