Reliance Power shares fell over 5% on Thursday, 15 October, following the Enforcement Directorate's seizure of assets worth ₹2,032.81 crore belonging to the Anil Ambani-led group company. According to reports from PTI, the stock opened at ₹19.68 on the BSE and touched an intraday high of ₹19.84 per share, while hitting a low of ₹18.80. The significant decline reflects investor concerns over the regulatory action against the company.
The Enforcement Directorate seized Indian assets including Reliance Power's bank balances and its shareholding in Sasan Power Ltd, as reported by PTI. The seizure order was issued on 12 October under Section 37A of FEMA. In response to the action, Reliance Power stated in a regulatory filing that it disputes the allegations and will take all appropriate steps, as advised by its legal counsel, to protect its interests and those of its shareholders and other stakeholders.
The ED investigation stems from a Securities and Exchange Board of India (SEBI) action regarding write-offs or provisions of ₹2,101.46 crore recorded in Reliance Power's books, according to PTI reports. The investigation traces back to 2006, when Reliance Natural Resources Ltd raised $300 million through foreign currency convertible bonds, with $275 million invested in its wholly owned Singapore subsidiary, *Reliance Natural Resources (Singapore) Pte Ltd (RNRL-S)**.
The ED alleged that funds raised overseas were routed through foreign entities and supported by fabricated documents, as reported by PTI. The agency claimed that loan proceeds were used for various purposes, including alleged temporary round-tripping of funds into India through foreign entities based in Mauritius. The BVI entities failed to repay loans extended by Deutsche Bank, and the ED alleged that documents were fabricated to show that RNRL-S and Reliance Power's Indonesian subsidiaries had provided advances to these entities for apparently legitimate business purposes.
According to technical analysts, Reliance Power shares remain in a downtrend with multiple support and resistance levels identified. Rajesh Bhosale from My Advisor Alpha placed the next support at ₹17.50 and resistance at ₹20.50, while Virat Jagad from Bonanza identified immediate support at ₹19 and resistance at ₹21.50. The stock is trading below all key moving averages, with an RSI of 31.22 indicating strong bearish momentum and the stock nearing oversold territory.
