Reliance Power Shares Crash 5% as ED Seizes Rs 2,033 Crore Assets in FEMA Case Against Anil Ambani Firm: What’s Next?
- October 15, 2026
- Posted by: Kunal Singla
- Category: News
Reliance Power shares fell about 5% to a 52-week low of Rs 19.05 on 15 Oct 2026, after the Enforcement Directorate provisionally seized assets worth Rs 2,032.81 crore under FEMA, mainly Sasan Power shares of Rs 2,026.65 crore. The company contests the allegations and says no penalty has been imposed. The order needs confirmation by the competent authority. The stock is down about 42% this year.
Quick Answer
Reliance Power shares fell about 5% on 15 October 2026 to a 52-week low of Rs 19.05, after the Enforcement Directorate provisionally seized assets worth Rs 2,032.81 crore under the Foreign Exchange Management Act. The seized assets are Sasan Power shares worth Rs 2,026.65 crore and bank balances of Rs 6.16 crore, and the order bars Reliance Power from selling, transferring or pledging them. The company contests the allegations, says the overseas investment was made with approvals and notes that no penalty has been imposed, while the order still needs confirmation by the competent authority. The stock is down about 42% this year, so the key questions are the confirmation, the Sasan Power pledge to Power Finance Corporation and the company’s debt.
Reliance Power is part of the Anil Ambani group, and its shares have been under pressure all year. The seizure by the Enforcement Directorate announced on 14 October was the latest in a series of enforcement actions involving the group, and Reliance Power stock fell for a second session on 15 October.
This guide explains what the ED alleges, what was seized, how the company has responded, what the process looks like from here and what investors should weigh. Some reports give the sum as Rs 2,027 crore and others as Rs 2,032 crore, and I explain the difference.
The allegations are the ED’s and have not been proven, and the company disputes them.
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Reliance Power Shares: The Move After the ED Action
| Item | Level | Note |
|---|---|---|
| Close on 14 Oct | Rs 19.82 | Down 1.05% from Rs 20.03 |
| Low on 15 Oct | Rs 19.05 | A new 52-week low; about 3.9% below the 14 Oct close (my calculation) |
| Fall from Rs 20.03 | About 4.9% | My calculation; the headline says 5% and one report says 4% |
| Two session fall | 4.39% | One market data report |
| 52-week high | Rs 47.68 | The low is about 60% below it |
| Year to date | Down about 42% | Down 55% to 57% over one year |
| Moving averages | Below all | 5, 20, 50, 100 and 200-day |
The Reliance Power fall on 15 October came as the Sensex rose about 1.1%, so the stock underperformed a rising market. Institutional holding in Reliance Power dropped 0.82% last quarter to 16.44%, which shows that large investors were already reducing exposure.
Risk: A stock at a 52-week low under a legal cloud can fall further on any new adverse news.
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What the ED Seized and Why
| Item | Detail |
|---|---|
| Total value | Rs 2,032.81 crore |
| Sasan Power shares | Rs 2,026.65 crore, in a wholly owned subsidiary |
| Bank balances | Rs 6.16 crore |
| Law | Section 4 of FEMA, 1999; seizure under Section 37A |
| Nature of order | Provisional; must be confirmed by the competent authority |
| Restriction | Reliance Power cannot sell, transfer, pledge or encumber the assets while it applies |
| Why two figures | Rs 2,026.65 crore plus Rs 6.16 crore makes Rs 2,032.81 crore; reports of Rs 2,027 crore round the shares alone (my reading) |
The ED says the seized assets match the value of foreign exchange allegedly held abroad in breach of Section 4 of FEMA. Section 37A allows the agency to seize assets of equivalent value in India when the foreign asset cannot be reached.
The searches at Reliance Power that led to this order were carried out from 6 to 8 March 2026, when the ED seized documents and recorded statements.
Risk: A provisional order can be confirmed, modified or set aside, and the outcome is not known.
The Allegations: How the ED Says the Money Moved
| Step | Allegation |
|---|---|
| 2006 | Reliance Natural Resources Ltd (RNRL), later merged into Reliance Power, raised 300 million dollars through foreign currency convertible bonds |
| Transfer | 275 million dollars went to its Singapore subsidiary, RNRL-S |
| Collateral | RNRL-S placed funds with Deutsche Bank (Suisse) SA in Geneva, used as collateral for loans to British Virgin Islands entities |
| Control | The ED says the BVI entities were run from India by the group through front persons, and did not repay the loans |
| Round tripping | Part of the loan money allegedly came back to India through Mauritius entities |
| Documents | The ED alleges backdated documents were created to show genuine business advances |
| Trigger | SEBI flagged write offs and provisions of Rs 2,101.46 crore tied to overseas investments and advances |
These are allegations from the ED’s statement as reported. The company says the investment was made with the necessary approvals and that the matter concerns FCCBs raised in 2006 and an overseas investment made in 2008.
Risk: A long running case with several parties can take years to resolve, and the stock may stay under pressure meanwhile.
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Reliance Power’s Response and the Sasan Power Pledge
| Point | Detail |
|---|---|
| Company stance | Contests the allegations and says the overseas investment had approvals |
| Penalty | The company says no penalty has been imposed |
| Pledge | The seized Sasan Power shares were pledged to Power Finance Corporation under security arrangements for over 10 years |
| Next step | The company says it is reviewing the implications and will protect its interests |
The Reliance Power pledge to Power Finance Corporation is important. The seized shares are already security for a lender, so a conflict between the ED restriction and the lender’s rights could arise. I could not find how that will be resolved, so I do not predict it.
Sasan Power is a key operating asset of Reliance Power, so any restriction on it matters for the group’s financial flexibility.
Risk: A restriction on a key subsidiary’s shares can limit Reliance Power’s ability to raise money or sell assets.
Reliance Power Financial Picture
| Metric | Detail |
|---|---|
| Debt to EBITDA | 6.27 times |
| Average return on equity | 0.06% |
| Return on capital employed | 5.3% |
| Non-operating income | 127.17% of pre-tax profit |
| Operating margin | Fell to 28.75% |
| Valuation | Enterprise value to capital employed of 0.7 |
| Institutional holding | 16.44%, down 0.82% in the last quarter |
Reliance Power profit has risen sharply over a year according to one report, but non-operating income is larger than pre-tax profit, so the earnings quality is weak. A low valuation reflects these risks and the legal overhang, so a low valuation alone is not a reason to buy.
Risk: High debt and weak returns leave the company exposed if funding conditions tighten.
What’s Next for Reliance Power Shares
- Confirmation or reversal of the provisional order by the competent authority
- How the pledge to Power Finance Corporation interacts with the order
- Any appeal or legal challenge by Reliance Power
- Further ED or other agency action against the group
- The next quarterly results and any disclosure about the case
Conclusion
Reliance Power shares fell to a 52-week low after the ED seized Rs 2,032.81 crore of assets under FEMA. The allegations are unproven and disputed, the order needs confirmation, and the stock carries high debt and legal risk, so weigh these before acting.
Disclaimer: Data and figures in this article are sourced from publicly available information. These may or may not be accurate. Please verify all data with the official NSE (nseindia.com) and BSE (bseindia.com) websites before making any investment decision. Investments in securities are subject to market risk. This content is for educational purposes only and is not investment advice by Univest (SEBI RA INH000013776).
Frequently Asked Questions
Why did Reliance Power shares fall 5%?
Ans. The stock fell to a 52-week low of Rs 19.05 on 15 October 2026 after the ED provisionally seized assets worth Rs 2,032.81 crore under FEMA. It was down about 4.9% from the 14 October level of Rs 20.03 (my calculation).
What did the ED seize?
Ans. Sasan Power shares worth Rs 2,026.65 crore and bank balances of Rs 6.16 crore, a total of Rs 2,032.81 crore.
What does the ED allege?
Ans. That funds raised abroad through FCCBs in 2006 were routed through foreign entities, used as collateral for loans to BVI companies and allegedly brought back through Mauritius, supported by backdated documents.
What does Reliance Power say?
Ans. It contests the allegations, says the overseas investment was made with approvals and notes that no penalty has been imposed.
Is the seizure final?
Ans. No. It is a provisional order that must be confirmed by the competent authority.
Why is the Sasan Power pledge important?
Ans. The shares were pledged to Power Finance Corporation for over 10 years, so the ED restriction and the lender’s security overlap.
Is Reliance Power undervalued?
Ans. Valuation measures look low, but debt to EBITDA is 6.27 times, returns are weak and earnings depend on non-operating income, so a low multiple is not a reason on its own.
Is this article investment advice?
Ans. No. It is educational and not a recommendation to buy or sell.
