Reliance Power Shares Plummet as Anil Ambani Faces Setback

Anil Ambani's Business Woes Continue

Embattled businessman Anil Ambani has suffered a major setback as shares of Reliance Power, a company he founded, nosedived on the Bombay Stock Exchange (BSE).

The sharp decline in stock value follows a disappointing set of financial results and concerns over the company's ability to repay its massive debt burden.

Mounting Debt and Financial Struggles

Reliance Power has been struggling with mounting debt for several years, a consequence of ambitious expansion plans and the acquisition of expensive coal assets.

The company's total debt stands at over ₹33,000 crore (US$4.4 billion), raising doubts about its ability to meet its financial obligations.

In addition, Reliance Power's financial performance has been weak in recent quarters, with revenue and profits declining significantly.

Trading Suspension and Regulatory Investigation

The steep fall in share prices prompted the BSE to suspend trading in Reliance Power shares on March 1, 2023.

The exchange cited "abnormal price movement" and "insufficient clarification" from the company as reasons for the suspension.