Reliance Power share price hits 5% lower circuit after major setback. Details here

Shares of Anil Ambani’s Reliance Power fell sharply on Friday, hitting a 5% lower circuit at Rs 41.47 on the Bombay Stock Exchange (BSE) following a major setback.
The Solar Energy Corporation of India (SECI) has banned Reliance Power and its subsidiaries, including Reliance NU BESS Ltd, from participating in SECI tenders for the next three years.
The restriction comes after allegations of submitting fake documents in a June tender for standalone Battery Energy Storage System (BESS) projects.
In its Thursday statement, SECI noted that the tender, which aimed at securing bids for a 1,000 MW/2,000 MWh BESS setup, was eventually cancelled after a review revealed discrepancies.
SECI found that a bank guarantee, initially presented by Maharashtra Energy Generation Ltd, now Reliance NU BESS Ltd, was not endorsed by the claimed foreign bank, labeling it as fraudulent.
It also highlighted that since the subsidiary met financial requirements based on Reliance Power’s strength, it held the parent company responsible for strategic decisions related to the bid.
In response, Reliance Power has strongly denied involvement in any wrongdoing.
In an exchange filing, the company stated it had “acted bonafidely” and was itself a “victim of fraud, forgery, and cheating.”
The company filed a criminal complaint with the Economic Offence Wing of the Delhi Police on October 16 against the third party allegedly involved in the forgery. Furthermore, Reliance Power has committed to taking “all appropriate legal steps” to challenge SECI’s action, stressing that it will act to protect the interests of its 40 lakh shareholders.
Reliance Power shares have faced significant volatility this year. The stock has surged by 103% over the past year, reaching a 52-week high of Rs 54.25 in early October. However, recent performance has been less impressive, with shares declining by over 12% in October and showing further losses in early November.
Reliance Power, with assets across coal, gas, hydro, and renewable energy totaling 5,300 MW, has been positioning itself in the renewable energy space. However, this ban could hamper its green energy initiatives by limiting access to key government-backed tenders.