Anil Ambani, once written off after a bankruptcy declaration in 2020, is staging a remarkable comeback through Reliance Power. The company’s stock has skyrocketed, delivering a jaw-dropping 2600% return over five years, with shares surging 22% in June 2025 alone. From a low of ₹1.13 in 2020, Reliance Power now trades at ₹30.45, sparking buzz in India’s financial markets. Is this the multi bagger marvel investors are chasing, or a fleeting high?
Debt Cleared, Deals Sealed
Reliance Power’s revival hinges on smart financial moves. In January 2025, the company repaid a $150 million loan to IIFCL UK, boosting investor confidence. It also settled ₹3,872 crore in debt with lenders like ICICI and Axis Bank, clearing all obligations by March. A game-changer came with a 500 MW/1000 MWh battery storage contract from SECI, positioning Reliance Power as a key player in India’s renewable energy push. “Anil’s back in the game,” a Mumbai broker told me, reflecting market optimism.
Green Energy Ambitions
The SECI deal, valued at ₹3,000 crore, marks Reliance Power’s shift to green energy. The company plans to develop solar and battery storage projects, aligning with India’s 500 GW renewable target by 2030. Its Rosa Power plant in Uttar Pradesh is also expanding, adding 1,200 MW capacity. “Reliance Power’s green pivot is smart,” said Dr. Vikram Shah, an energy analyst at IIM Ahmedabad. “It’s tapping into India’s clean energy boom.” This has fueled investor excitement, with trading volumes hitting record highs.
Investor Frenzy and Risks
India’s stock market is abuzz, with retail investors piling into Reliance Power. The stock’s low price and high growth potential make it a darling for small traders, but experts urge caution. “Valuations are stretched,” warned Priya Mehra, a Delhi-based fund manager. “A 25x price-to-earnings ratio is risky if growth stalls.” Past volatility, including a 40% drop in 2022, looms large. Yet, bullish sentiment persists, driven by Anil’s legal wins and new defense contracts for Reliance Infrastructure, a sister company.
India’s Economic Context
Reliance Power’s rise aligns with India’s economic optimism. With GDP growth at 7.2% in 2024-25 and energy demand soaring, power companies are in the spotlight. Indian investors, especially millennials, see Anil’s comeback as a rags-to-riches story. “He’s proving the doubters wrong,” said a young trader in Surat. Social media reflects this hype, with posts calling Reliance Power “the stock of the decade.” The company’s debt-free status and green projects add to its appeal.
Anil’s Redemption Arc
Anil Ambani’s journey from financial ruin to market darling is personal for many Indians. Once overshadowed by his brother Mukesh, Anil faced legal battles and asset seizures. Now, his focus on renewables and strategic debt repayment has restored faith. “He’s showing resilience,” said a Mumbai entrepreneur. However, Anil’s past, including the 2018 Rafale controversy, keeps skeptics wary of overhyping his comeback.
Multibagger or Mirage?
Reliance Power’s stock surge is undeniable, but is it sustainable? The SECI contract and debt clearance signal strength, but high valuations and market volatility pose risks. For Indian investors, the stock offers hope of massive returns, yet experts advise due diligence. “Don’t chase hype—check fundamentals,” Mehra cautioned. As Anil Ambani steers Reliance Power into a green future, India watches to see if this is a true multi bagger marvel or a bubble waiting to burst.
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Last Updated on: Saturday, June 14, 2025 7:36 pm by Hemang Warudkar | Published by: Hemang Warudkar on Saturday, June 14, 2025 7:36 pm | News Categories: Business, Industry, Latest, News, Trending
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