Why Reliance Power Share Price is Falling

India's power sector is crucial for its economic growth and development. The country is focusing on renewable energy and expanding infrastructure to meet the increasing electricity needs of its people and industries.

Reliance Power is a major player in India, developing and operating power projects using both traditional and renewable energy sources.

However, the company has been under pressure recently. Its share price is the talk of the town as it fell 10% over two days, raising concerns among investors.

What's dragging it down?

Loan Fraud Allegations

The share price of tanked 10% in just two days after the reports emerged that the Enforcement Directorate (ED) raided Anil Ambani group companies as a part of a money laundering investigation related to a Rs 30 billion (bn) bank loan fraud.

The ED is investigating allegations that Yes Bank illegally disbursed around Rs 30 bn in loans between 2017 and 2019. Investigators found that Yes Bank promoters received money just before approving these loans.

It's investigating claims of serious irregularities in Yes Bank's loan approval to Anil Ambani's Reliance Group companies. This includes allegations of backdated approvals and investments made without proper checks, violating the bank's policies.

Meanwhile, the State Bank of India recently labelled another Anil Ambani company, Reliance Communications, as a fraud account.

Canara Bank recently told the Bombay High Court that it has reversed its decision to classify a loan account of Reliance Communications, linked to Anil Ambani as fraudulent. This account is part of Reliance Communication's ongoing insolvency proceedings.

Reliance Power and Reliance Infrastructure issued separate statements, clarifying that the recent actions won't impact the business, finances or stakeholders.

The companies stated that media reports seem to relate to old allegations involving Reliance Communications (RCom) and Reliance Home Finance (RHFL), dating back over 10 years.

What Next?

Moving forward, Reliance Power plans to invest over Rs 100 bn in a solar power project manufacturing facility in Andhra Pradesh.

It plans to increase its focus on renewable energy, particularly solar and wind power, due to the rising demand for clean energy.

Reliance Power is also exploring green hydrogen opportunities and plans to invest in smart grids and energy storage.

The company aims to build a 1,500 MW gas-based power project abroad and is bidding on international tenders for the project.

How Reliance Power Share Price Has Performed Recently

Reliance Power's share price has dropped 11.5% over the past five trading sessions but is up 91% over the last year.

The stock touched its 52-week high of Rs 76.5 on 11 June 2025 and a 52-week low of Rs 28.2 on 25 July 2024.

About Reliance Power

Reliance Power is a key player in India's energy sector and operates under R-ADAG.

Established on 17 January 1995, the company originally operated as Bawana Power Private Limited before changing its name in July 2007.

Reliance Power develops, builds, and operates power projects in India, with a large portfolio of operational and upcoming generation projects.

It has a generation capacity of 5,945 MW across thermal and renewable energy sources.

The company, along with its subsidiaries, is developing coal, gas, hydro, wind, and solar-based energy projects.

For more details about the company, you can have a look at the Reliance Power fact sheet and quarterly results on our website.

You can also compare Reliance Power with its peers:

Reliance power vs Adani power

Reliance power vs Tata power

Reliance Power vs NTPC Green Energy

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

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