The Reliance Power share price history stands as one of the most dramatic and cautionary tales of wealth erosion in the Indian stock market. What began in 2008 as India’s biggest-ever IPO, met with massive oversubscription and sky-high investor enthusiasm, ultimately collapsed into a penny stock in just over a decade. The fall was not a sudden shock but a slow, painful decline driven by a chain of legal setbacks, execution failures, policy shocks, and a deep crisis of credibility at the group level, which collectively destroyed around 90% of shareholder value.
This analysis traces the Reliance Power stock history, event by event, to explain how each development influenced its trajectory from a market darling to a penny stock.
Table of Contents
- A Brief Profile of Reliance Power
- The IPO and the Listing Day Disaster (2008)
- Why Did Reliance Power Issue Bonus Shares? (2008)
- A Glimmer of Hope: The Gas Verdict and RNRL Merger (2010)
- The Long Decline: Key Setbacks from 2012 to 2018
- Hitting Rock Bottom: From Costly Disputes to the COVID Crash (2019–2020)
- Recent Troubles and Turnaround Hopes (2024–2025)
- The Ultimate Lesson from Reliance Power's Journey
- Frequently Asked Questions (FAQs)
Part of the Anil Dhirubhai Ambani Group (ADAG), Reliance Power Limited was incorporated in 1995 and positioned as a key player in India's energy sector. The company develops, constructs, and operates power projects both in India and internationally, with an operational capacity of around 6,000 MW. Its project portfolio includes the flagship 3,960 MW Sasan Ultra Mega Power Project (UMPP), other coal-fired plants, gas-based projects, and hydroelectric facilities.
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Want to understand the revenue engines that drive this private power producer? Read Reliance Power business model for a detailed breakdown of its thermal and renewable energy strategies.
Reliance Power's IPO in January 2008 was a mega-issue, raising a massive ₹11,563 crore at an issue price of ₹450 per share (₹430 for retail investors). It was one of India's largest IPOs and was hugely oversubscribed—by approximately 70 times—reflecting immense investor optimism and the power of the Reliance brand.
However, the excitement lasted only for a few minutes on its listing day, February 11, 2008.
- The Listing: The stock opened strong, briefly jumping 19% to ₹538.
- The Crash: Within minutes, it plunged, finally closing at ₹372.50, a 17% loss from its issue price.
- The Impact: The listing day failure wiped out nearly ₹4,000 crore of market value, denting the "Reliance" brand's stellar IPO track record for the first time. For the millions of retail investors who had expected guaranteed listing gains, it was a rude shock that shattered their trust and created a lasting stigma of the stock being overpriced and overhyped.
This disaster marked the first turning point in the Reliance Power share price history.
To manage the fallout from the disastrous listing and pacify angry investors, Reliance Power announced a 3:2 bonus share issue (three bonus shares for every five shares held). This move was aimed at restoring some market confidence and effectively reduced the average cost for IPO investors to around ₹269 to ₹281 per share.
| Shares held |
Bonus shares (3:2) |
Total shares after bonus |
| 2 |
3 |
5 |
However, the relief was temporary. While the stock saw a brief rally, the absence of any real progress on its ambitious projects meant the price continued to fall. By the end of 2008, amid the global financial crisis, the stock was trading well below even the adjusted cost, rendering the bonus issue a mere band-aid on a deep wound.
In 2010, two key events provided a temporary boost to investor sentiment. The Supreme Court delivered a favourable verdict on a long-standing natural gas supply dispute, providing much-needed legal clarity. Around the same time, Reliance Power merged with Reliance Natural Resources Limited (RNRL), consolidating the group's energy assets. This combination temporarily strengthened the stock as investors hoped it would pave the way for future growth.
The optimism of 2010 quickly faded as the company was hit by a series of major setbacks that dismantled investor confidence piece by piece.
- Losing Prestige: Removal from Nifty 50 (2012): By 2012, the stock had lost so much value and market relevance that it was removed from the benchmark Nifty 50 index, a clear signal of its declining stature.
- Execution Failures (2013–2015): While the Sasan UMPP did become operational in this period, it was a rare success. Many other flagship projects, like the Krishnapatnam UMPP, faced massive execution delays and cost overruns, forcing the company to seek government buyouts to cut its losses.
- Regulatory Blow: The Coal Block Verdict (2014): The Supreme Court's decision to annul all coal block allocations made since 1993 created huge uncertainty over fuel supply for Reliance Power's thermal plants, further spooking investors.
- The Group's Collapse: ADAG Debt Crisis (2018): By 2018, the entire Anil Ambani-led ADAG Group was reeling under a massive debt crisis. Concerns about the parent group's financial health and corporate governance triggered a steep selloff across all group companies, and Reliance Power was one of the worst hit.
Want to analyse how the company’s market valuation has shifted since its IPO? Check the latest Reliance Power share price.
- Legacy Burdens (2019): The dispute over the failed 4,000 MW Krishnapatnam UMPP collapsed after rising coal costs made the project unviable. The company faced a ₹300 crore loss from the encashment of its bank guarantee, reminding investors of the costly legacy of its failed projects.
- The Final Blow: The COVID Crash (2020): The market crash in March 2020 was the final nail in the coffin. The pandemic amplified all of the company's weaknesses—high debt, stalled projects, and weak cash flow. On March 26, 2020, Reliance Power's stock hit an all-time low of ₹1.00, officially becoming a penny stock and cementing its status as one of India's biggest IPO failures.
This was the lowest point in the Reliance Power share price journey.
Even in recent years, the company has struggled to shake off its troubled legacy.
- Governance Woes Continue (2024): In 2024, the company was debarred by the Solar Energy Corporation of India (SECI) for three years over allegations of submitting fake bank guarantees. While the Delhi High Court later stayed this order, the incident revived concerns about the company's governance standards.
- A Pivot to Renewables (2025): The company is now attempting a strategic pivot towards renewable energy, including a green digital joint venture in Bhutan. This has sparked occasional rallies of 15-17%, with investors hoping for a "new Reliance Power." However, the optimism is often short-lived, as the heavy overhang of its past legal and operational issues continues to trigger volatility.
There’s an insightful video on YouTube by NDTV Profit discussing when investors should consider selling Reliance Power shares—highly relevant to anyone following its price history.
The story of Reliance Power and its share price history is a powerful lesson for all investors. Its journey from a record-breaking IPO to a penny stock shows that market hype, a big brand name, and ambitious promises cannot replace strong business fundamentals, transparent governance, and flawless execution. For long-term wealth creation, investors must look beyond the excitement of an IPO and focus on companies with sustainable and proven business models.
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Want to assess the company’s latest profit metrics and balance sheet strength? Review the Reliance Power financial statements for detailed ratio analysis and FY25–FY26 data.
Q1: Why did Reliance Power’s 2008 IPO fail despite massive investor interest?
The IPO opened strongly but quickly fell 17% on listing due to overpricing, execution risks, and investor scepticism. Immediate losses dented trust and created a stigma of “overpromising.” This early failure set the tone for the company’s long-term struggle with investor confidence.
Q2: How did promoter shareholding affect investor control?
Promoters held 90% post-IPO, leaving retail and institutional investors with limited influence. SEBI extended promoter lock-in to five years to ensure accountability. High promoter control meant strategic decisions were mainly insulated from public shareholders’ concerns.
Q3: Which projects impacted Reliance Power’s credibility and stock performance?
Sasan UMPP succeeded, but projects like Krishnapatnam UMPP faced execution delays or legal disputes, leading to financial losses and deepening investor distrust. The contrast between a few successes and multiple setbacks highlighted execution risk.
Q4: How did regulatory and legal events influence the stock?
Supreme Court gas verdicts, coal block cancellations, and SECI debarment created uncertainty, affecting fuel supply, project execution, and governance perception, further pushing the stock toward penny territory. Such events repeatedly reminded investors of the company’s vulnerability to policy changes.
Q5: Can Reliance Power’s pivot to renewables revive investor confidence?
While the renewable push reflects strategic intent, legacy legal issues, debt, and weak execution continue to overshadow growth prospects, making recovery uncertain. Investor optimism may remain limited until the company proves consistent delivery and governance.