Introduction
The recent Enforcement Directorate (ED) raids on Anil Ambani-linked premises have sent shockwaves through the financial markets, significantly impacting the share prices of Reliance Power and Reliance Infrastructure. This blog dives into the latest developments surrounding the Anil Ambani news, the ED’s money laundering probe, and how it has affected RPower share price and Reliance Infra share price. Stay updated with the latest insights into Reliance Power, Reliance Infrastructure, and the broader implications for investors.
Anil Ambani and the ED Raids: What Happened?
On July 24, 2025, the Enforcement Directorate conducted extensive raids across over 35 locations in Mumbai and Delhi, targeting more than 50 companies and 25 individuals linked to Anil Ambani’s Reliance Group. The raids are part of a ₹3,000 crore money laundering investigation tied to alleged loan fraud involving Yes Bank between 2017 and 2019. The ED is probing allegations of improper loan diversions, backdated credit approvals, and potential bribery of Yes Bank officials, including former promoter Rana Kapoor.
The investigation focuses on companies like Reliance Communications (RCom) and Reliance Home Finance (RHFL), with the ED uncovering violations such as lending to entities with weak financials and “evergreening” loans to mask defaults. These developments have reignited scrutiny on Anil Ambani, once a prominent business tycoon, whose financial empire has faced significant challenges in recent years.
Impact on Reliance Power Share Price
The news of the ED raids led to an immediate market reaction, with Reliance Power share price dropping significantly. On July 24, 2025, RPower share price fell by as much as 4.79%, closing at ₹59.83 on the BSE, locked in a 5% lower circuit. This sharp decline erased some of the stock’s recent gains, which had seen it surge by 125% over the past year, reaching a 52-week high of ₹77.26 earlier in 2025.
Despite the setback, Reliance Power issued a clarification stating that the company operates independently of RCom and RHFL, the primary targets of the ED probe. The company emphasized that the raids have “absolutely no impact” on its business operations, financial performance, or stakeholders. However, investor sentiment took a hit, leading to heavy selling pressure with over 12.18 million shares traded and pending sell orders for 7.53 million shares on the NSE and BSE.
Reliance Power Share Price Performance
- 1-Year Return: +125% (from ₹29 to ₹65+ levels)
- 5-Year Return: +2,480% (from a low of ₹1.1 in March 2020)
- Recent Decline: -19% from a 52-week high of ₹77.26
- Market Cap: ₹26,242 crore as of June 2025
Analysts suggest that while the ED raids have triggered short-term volatility, Reliance Power’s long-term prospects remain intact due to its debt reduction efforts and focus on renewable energy projects, such as a 350 MW solar power project with a 175 MW/700 MWh Battery Energy Storage System (BESS).
Reliance Infrastructure Share Price Movement
Similarly, Reliance Infra share price experienced a sharp decline, tumbling by 4.99% to ₹360 on the BSE on July 24, 2025, also hitting a 5% lower circuit. The stock had previously surged by 87% over the past year, driven by successful debt reduction and new project wins in defense and renewable energy. The ED raids, however, led to a sell-off, with 1.48 million equity shares traded and pending sell orders for 1.3 million shares.
Reliance Infrastructure, like Reliance Power, clarified that it has no business or financial linkage to RCom or RHFL, emphasizing that its operations and governance remain unaffected by the ED’s actions. The company’s recent financial turnaround, with a Q4 FY25 net profit of ₹4,387 crore and a 681% increase in adjusted EBITDA, has bolstered investor confidence prior to the raids.
Reliance Infra Share Price Performance
- 1-Year Return: +87%
- 3-Year Return: +134%
- Recent Decline: -3.5% to ₹365.80 intraday on July 24, 2025
- Market Cap: Exceeds ₹45,000 crore (combined with Reliance Power)
Reliance Infrastructure’s strategic partnerships, such as with Diehl Defence for precision munitions and Rheinmetall AG for ammunition manufacturing, position it well for future growth, despite the current market turbulence.
Anil Ambani’s Financial Comeback and Challenges
Anil Ambani, once the sixth richest person in the world with a net worth of $42 billion, saw his fortunes plummet due to massive debts and regulatory issues. However, 2025 marked a significant turnaround for his companies, with Reliance Power becoming debt-free and Reliance Infrastructure reducing its standalone net debt to zero. The involvement of his sons, Jai Anmol and Jai Anshul Ambani, has been pivotal in restoring investor confidence.
Despite this progress, the ED raids and prior regulatory actions, such as SEBI’s five-year ban on Anil Ambani from the securities market for fund diversion at RHFL, pose ongoing challenges. Ambani is reportedly seeking legal advice to address these issues, which could influence the future trajectory of his business empire.
Should You Invest in Reliance Power and Reliance Infra?
The recent ED raids have introduced volatility in Reliance Power and Reliance Infra stocks, but analysts remain cautiously optimistic. Here are key factors to consider:
Reasons to Buy
- Debt Reduction: Both companies have significantly reduced debt, with Reliance Power achieving a debt-free status and Reliance Infra slashing its debt by 87%.
- Project Wins: Reliance Power’s renewable energy projects and Reliance Infra’s defense contracts signal strong growth potential.
- Historical Performance: Both stocks have delivered multibagger returns over the past few years, with Reliance Power up 2,480% in five years.
Risks to Consider
- ED Investigation: Ongoing probes could lead to further regulatory actions, impacting investor sentiment.
- Market Volatility: The stocks are currently under the Trade-for-Trade (T) group on the BSE, indicating heightened surveillance and potential for sharp price swings.
- Technical Indicators: Reliance Power’s RSI at 77.1 suggests overbought conditions, hinting at a possible pullback.
Analysts recommend that investors with a high-risk appetite consider momentum buying in Reliance Power with a stop loss at ₹36, targeting ₹48–₹52. For Reliance Infra, the focus on defense and infrastructure projects could drive long-term value, but caution is advised due to the ongoing ED probe.
Conclusion
The ED raids on Anil Ambani’s Reliance Group have created short-term uncertainty, leading to a sharp decline in Reliance Power share price and Reliance Infra share price. However, both companies’ strong fundamentals, debt reduction efforts, and strategic project wins provide a foundation for potential recovery. Investors should closely monitor developments in the ED investigation and consult certified financial advisors before making investment decisions.
Disclaimer: The information provided is for informational purposes only and should not be considered investment advice. Always consult a qualified financial advisor before investing.
FAQs
Why did Reliance Power and Reliance Infra shares fall?
The shares fell due to ED raids on July 24, 2025, linked to a ₹3,000 crore money laundering probe involving Yes Bank loans. Both companies clarified that they are independent of the investigated entities (RCom and RHFL).
Is Reliance Power a good investment in 2025?
Reliance Power’s debt-free status and renewable energy projects make it attractive for high-risk investors, but the ED probe adds uncertainty. Analysts suggest a short-term target of ₹48–₹52 with a stop loss at ₹36.
What is the status of Anil Ambani’s net worth?
Anil Ambani’s net worth has risen to approximately $530 million in 2025, driven by the turnaround of Reliance Power and Reliance Infra.
How are Reliance Power and Reliance Infra performing financially?
Reliance Power reported a Q4 FY25 net profit of ₹126 crore, while Reliance Infra posted a ₹4,387 crore profit, driven by reduced expenses and new project wins.
Stay tuned for more updates on Anil Ambani, Reliance Power, and Reliance Infra as the situation evolves!