Reliance Infrastructure Ltd. and Reliance Power Ltd.’s shares are under scrutiny on 7 October following their clarification of SEBI show-cause notifications regarding suspected violations of the SEBI Act of 1992 and the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003.
Reliance Power stated in a filing to the BSE that it has no exposure to CLE Private Limited and that it has received a show-cause notice from SEBI regarding Reliance Infrastructure Limited’s stake in the company for suspected violations. According to Reliance Power, the business will act appropriately in this case as directed by law.
Reliance’s Response to SEBI
In a different filing, Reliance Infrastructure stated that it had previously revealed on February 9, 2025, that the conflict pertaining to the company’s exposure with CLE Private Limited had been resolved by consent terms filed before the Hon’ble Bombay High Court’s Mediation Centre in accordance with the Mediation Act, 2023.
Following an eight-month delay, Reliance Infra reported that it has now received a Show Cause Notice from SEBI for allegedly violating the SEBI (Prohibition of Fraudulent and Unfair Trade Practices) Regulations, 2003, as well as the SEBI Act, 1992. According to the Mediation Act of 2023, the settlement with CLE Private Limited has already been reached and is completely operative. Reliance Infra promised to follow legal advice and take the necessary action in this case.
Reliance Declaring CPL Issue Now Fully Resolved
Reliance Infra had earlier on February 9 declared that its dispute with CPL was fully resolved, and as a result, INR 5,777.13 crore in assets and economic interests in CPL’s assets were assigned or transferred to the company. Additionally, INR 726 crore, the decreed amount, was converted into a secured loan with customary representations, warranties, and indemnity in the company’s favour.
According to Reliance Infra, Reliance Infrastructure Limited and CPL submitted the consent terms under Mediation Application No. 181/2023 to the Hon’ble Bombay High Court in accordance with the Mediation Act, 2023, in order to settle their unresolved disagreements and claims. It stated that all pending claims and disputes against CPL had been fully and definitively settled for INR 6,503.13 crore.
Quick Shots
•Reliance Power and Reliance Infrastructure shares
under scrutiny on October 7.
•EBI issued notices for alleged violations of SEBI
Act, 1992 and SEBI Regulations, 2003.
•Reliance Power confirmed no exposure to CLE Private
Limited (CPL).
•SEBI notice linked to Reliance Infra’s stake in
CPL.
•Settlement resolved through Bombay High Court
Mediation Centre under the Mediation Act, 2023.
•Despite the prior resolution, SEBI issued a notice
after 8 months.
The rise of the Ambani brothers, Mukesh and Anil, is one of India’s most inspiring business tales. Mukesh and Anil Ambani, sons of the legendary Dhirubhai Ambani, were set to grow Reliance Industries into an even bigger empire. In 2008, Anil Ambani ranked as the sixth-richest person in the world, boasting a staggering net worth of $42 billion.
But his journey soon took a dramatic turn in 2020, when he declared bankruptcy in a UK court, marking one of the most stunning downfalls in corporate India. This is the rollercoaster story of Anil Ambani, a man who went from being one of the world’s richest billionaires to declaring bankruptcy, only to now rise again, this time building business jets and clean energy assets.
The Ambitious Climb: How Anil Ambani Took the Spotlight?
The Great Reliance Split (2005)
After the death of legendary industrialist Dhirubhai Ambani in 2002, a power struggle emerged between his two sons, Mukesh Ambani and Anil Ambani, over the control of Reliance Industries. The boardroom battle soon became public and captivated corporate India. In June 2005, their mother, Kokilaben Ambani, brokered a peace deal, leading to the formal division of the Reliance empire.
Under the demerger agreement, Anil Ambani received control of several non-petrochemical businesses, including:
Telecom – Reliance Communications
Financial Services & Insurance – Reliance Capital
Power & Infrastructure – Reliance Energy (later renamed Reliance Infrastructure)
Anil’s ambition knew no bounds. In 2008, he launched the Reliance Power IPO, which became a historic market event. The IPO was:
Oversubscribed within minutes, drawing massive interest from investors.
It had received bids for 69 times the number of shares on offer, reflecting unprecedented investor enthusiasm.
Raised INR 11,500 crores ($3 billion), making it India’s largest IPO at the time.
Riding on the IPO hype, Anil’s net worth skyrocketed to around $42 billion, briefly making him the 6th richest person in the world, ahead of even his elder brother, Mukesh. It was the peak of his financial might.
Expanding the Empire: From Telecom to Tinseltown
With massive public and investor support, Anil rapidly diversified his portfolio:
Reliance Capital entered insurance, mutual funds, and consumer finance.
Reliance Infrastructure undertook large-scale EPC and urban transport projects.
In media, he launched BIG FM, acquired Adlabs Films, and even partnered with Steven Spielberg’s DreamWorks in 2009, involving $825 million in funding from Reliance, marking one of India’s boldest global entertainment deals.
The Fall of Anil Ambani: Debt, Legal Woes & Public Humiliation
The Telecom Collapse
Reliance Communications (RCom), once India’s telecom leader, couldn’t survive the Jio-led price war. Burdened by debt and failed strategies, it collapsed. A crucial $2 billion merger with MTN in 2008 also fell apart.
Failed MTN deal due to regulatory restrictions (2008)
Lost market share after Jio’s entry (2016)
Filed for bankruptcy under IBC in 2019
Ericsson Contempt
In 2019, Anil was held in contempt by the Supreme Court over unpaid dues to Ericsson. Claiming inability to pay, he faced jail, until Mukesh Ambani stepped in. It was a moment of public embarrassment.
INR 550 crore in dues unpaid to Ericsson
Anil claimed zero liquidity
Mukesh bailed him out with INR 453 crore
Court Order
A UK court has mandated that Anil Ambani pay over $700 million to Chinese banks, marking the conclusion of a high-profile legal battle that exposed the dramatic financial downfall of a businessman who was once among the world’s wealthiest tycoons.
Regulatory Crackdown & Supreme Court Blow
Anil Ambani’s financial troubles deepened in 2024 as SEBI and the Supreme Court took major actions against him. He and 24 others were banned from the securities market over fund diversion at Reliance Home Finance. The Supreme Court also struck down a massive arbitration win for his group.
SEBI barred Anil Ambani & 24 entities from the securities market for 5 years
INR 25 crore fine imposed for mismanagement at Reliance Home Finance
The Supreme Court overturned an INR 8,000 crore arbitration award to Reliance Infrastructure.
Ordered INR 3,300 crore refund to Delhi Metro Rail Corporation (DMRC)
Following a period marked by financial distress and legal hurdles, Anil Ambani set a bold new direction for his business empire in 2024–25. Shedding the high-debt, high-risk model of the past, he pivoted Reliance Group’s focus toward three strategic pillars:
Defense manufacturing
Green and renewable energy
Asset-light, debt-conscious operations
This renewed approach aligns closely with India’s national priorities, including ‘Make in India’, Atmanirbhar Bharat, and the global push for clean, sustainable energy solutions.
Reliance Power’s Turnaround
Q4 FY25 saw a dramatic turnaround: Reliance Power swung from an INR 397.6 crore loss to an INR 125.6 crore profit, committed to becoming debt-free via capital raises & cost control.
The agreement includes the delivery of 930 MW of solar power combined with a 465 MW/1,860 MWh battery energy storage system (BESS), making it Asia’s largest solar-BESS project at a single location to date, the company stated.
Reliance Power Q4FY25 Financials:
Particulars
Q4 FY25 (INR Cr)
Q4 FY24 (INR Cr)
YoY Change (%)
Revenue from Operations
1,978.01
1,996.65
-0.9%
Other Income
87.63
197.20
-55.6%
Total Income**
2,066.64
2,193.85
-5.8%
Total Expenses
1,998.49
2,615.51
-23.6%
Profit Before Tax
67.15
(463.05)
NA
Profit After Tax (PAT)
125.57
(397.56)
NA
Total Comprehensive Income
122.41
(396.62)
NA
Reliance Infrastructure’s Revival
Reliance Infrastructure also staged a comeback in FY25:
Cut standalone net debt from INR 3,831 crore to zero/near zero
Posted an INR 4,387 crore consolidated profit in Q4 FY25
Plans are underway to become fully debt-free and tap into defense & metro-rail projects, including INR 10,000 crore potential from MoD contracts
Reliance Infrastructure Financials FY25
Particulars
Q4 FY25 (INR Cr)
Q4 FY24 (INR Cr)
YoY Change (%)
Consolidated Net Profit
4,387.08
(220.00)
NA
Consolidated Operating Income
4,108.01
~4,666.00 (approx)
-12% (approx)
Adjusted EBITDA
8,876.00
~1,137.00 (approx)
+681% (QoQ)
FY Consolidated PAT
4,938.00
(1,609.00)
NA
Standalone Net Debt
0.00
~3,300.00
Reduced to zero
Big Moves in Defense & Aviation
In June 2025, Reliance took a major step into aerospace:
Partnered with Dassault Aviation to build Falcon 2000 business jets in India, the first assembly outside France
Set up the final assembly line at the DRAL facility in Nagpur, targeting the first “Made‑in‑India” Falcons by 2028
The venture was hailed as “Make in India” and triggered a 4.2% jump in Reliance Infra shares
In parallel, Reliance signed an INR 10,000 crore agreement to:
Manufacture Vulcano 155 mm precision-guided artillery shells at a greenfield plant in Maharashtra, projected to be India’s most advanced private defense production hub.
The plant is a part of the upcoming Dhirubhai Ambani Defence City (DADC) in Ratnagiri. It is expected to produce 200,000 shells annually, along with 10,000 tonnes of explosives and 2,000 tonnes of propellants.
These high-stakes ventures mark Reliance’s decisive push into critical defense and aerospace manufacturing, aligning with India’s Atmanirbhar Bharat (self-reliant India) initiative and supporting Anil Ambani’s broader corporate revival strategy.
As Anil Ambani reshapes his business empire, his sons Jai Anmol Ambani and Jai Anshul Ambani have stepped up as key drivers of the group’s revival. The next generation of the Ambani legacy is quietly but firmly taking charge, bringing fresh energy, strategic clarity, and a modern lens to the Anil D. Ambani Group (ADAG).
Jai Anmol Ambani – The Financial Brain
Anil Ambani, Tina Ambani and Jai Anmol Ambani
The elder son, Jai Anmol, previously a director at Reliance Capital and Reliance Nippon Life AMC, has taken a more hands-on role in the group’s financial restructuring.
He began his career as an intern at Reliance Mutual Fund in 2014 and rose to become Executive Director at Reliance Capital in 2017
Instrumental in raising stakes in Nippon India Asset Management.
He is popular for his focused style of leadership in financial ventures.
Conclusion
Anil Ambani’s story is a rare mix of extreme success, public downfall, and quiet reinvention. Once the 6th richest man in the world, he lost it all, facing bankruptcy, legal troubles, and market bans. But he didn’t give up. Today, with a renewed focus on defense, green energy, and debt-free growth, Anil is slowly rebuilding.
FAQs
What is Anil Ambani’s current role in Reliance Group?
Anil Ambani is Chairman of the Reliance Group, overseeing all its major listed companies, Reliance Communications, Capital, Infrastructure, Power, Defence & Engineering, among others.
How has Anil Ambani’s net worth changed in recent years?
As of March 2025, Anil Ambani’s net worth has plunged to approximately $530 million, down from a peak of $42 billion in 2008, with most of the decline unfolding over the past decade.
What is the status of Anil Ambani’s legal or bankruptcy cases?
Anil Ambani is facing multiple legal issues. In July 2025, SBI flagged Reliance Communications’ loan account as fraud. SEBI banned him from the securities market for 5 years in 2024 over fund diversion. NCLT admitted insolvency proceedings against Reliance Infrastructure, though NCLAT later paused it. He also withdrew a tax notice challenge in April 2025 and was fined.
An IPO (Initial Public Offering) is a company’s coming out of the box moment, where a company goes public to raise money in exchange for shares that are a part of their company in the form of equity. If all goes well, the investors will scramble and rush to buy the stock, thus increasing the demand for their shares which will give them the rooftop listing prices. This is only the optimistic way of looking at this, of course; you can’t predict the outcome of how your stock will perform during the opening.
But what if nobody shows up?, what if nobody buys your IPO? surely initial public offerings are a very good way of raising huge sums of initial capital but there are always downsides to it, like opening up to a wider public and dealing with market moods and cranky shareholders which are often not predictable.
When is an IPO considered a failure?
If the stock prices of the company do not meet the valuation at which the stock was listed, then the IPO is considered a failure.
There were several booms in IPOs in India, but not every IPO was able to reap the valuation that it desired. Let’s know some of the biggest IPO failures.
Listed in the year 2008, Reliance Power was also known as the dream IPO of Anil Ambani; this IPO ran very well on the hype wave and took the global market by storm. It was a hit even before reaching the market, and the speculations valued it at almost 190 billion dollars in the local market and also 100 billion dollars from foreign investors. It was one of the biggest IPOs to ever hit the market. But after all this, the IPO listing story was different. Only after a few days of listing did the price of Reliance Shares come crashing down, as if just the name of the company was not enough, nor the tag of Ambani. Very soon the dream run of Ambani’s Reliance Power came to a standstill and fast forward to today, the stock price of Reliance Power is down 99% from the listing price. There is nothing more to say after this, there will never be a bigger failure in the history of the stock market.
Paytm
2021 was such a dream run for all the stocks as the markets were breaking records and touching sky-high levels several times. Also known as the golden year for IPOs, Paytm is also a fintech company that launched its IPO in 2021. The failure can also be blamed on the extreme optimism of the company which issued it at a very over-the-top valuation which was around Rs 18,300cr. But even though the opening of the stock was very weak, it was listed in 1955 against the issue price of Rs 2150. Soon the stock lost close to 75% of its value and is trading at around 600 per share. Some blamed the company’s financials for its performance and some blamed its bloated listing price, and some even blamed it for hitting the market too soon; all said and done, the IPO was one of the biggest failures in the history of financial markets
Why Paytm IPO failed?
Zomato
Zomato – Failed IPO
Even though one of the leaders in its sector Zomato is still a loss-making company and this has directly affected its IPO and market value. Hitting the market in 2021, Zomato had a pretty good run and had pretty good listing gains. But all of this came crashing down when Zomato shares faced a reality check when it lost 47% of their value in a single month of June 2021, and it is currently trading below its listing price.
RateGain Travel Technologies
RateGain – Failed IPO
Although this stock cannot be totally described as a total failure, it didn’t do any wonders either. It was listed on the stock market in January 2022 and it had a wonderful run when the stock zoomed more than 25% in less than a month of its listing. But soon the sunny days of the stock were over and currently, it is trading around 11% below its issue price
Cartrade Tech
CarTrade Tech – Failed IPO
Issued in the year August 2021, CarTrade Tech was one of the biggest failures an IPO has ever faced in such a short period of time. Even though the CarTrade Tech IPO was subscribed 20.29 times & the public issue was subscribed 2.75 times in the retail category, the optimism did not last long. Even though the stock had its dream run for a couple of months, then corrected itself and lost almost 35% of its value in the next couple of months.
Launched in August 2021 Krsnaa Diagnostics is one of India’s largest diagnostics providers.
Even with a lot of optimism lurking around after debuting at a 7% premium over the issue price, this dream run did not last very long, the stock price of the company quickly lost its value after the declaration of its increased loss in FY20. The stock is currently trading close to -30% of its value from its issue price.
SjS Enterprises
SjS enterprises – Failed IPO
One of the leading players in the Indian decorative aesthetics industry, SjS enterprises was a unique niche to hit the market, but that certainly was not enough to impress the investors. Even the debut of the IPO was very weak as it opened 5% below its issuing price. After debuting in the market in November 2021 the fate of the company’s stock did not change anytime soon and is still trading around 20% below its issue price, a part of the blame can be given to the low revenue growth of the company and low-income turnout too.
Kalyan Jewellers India
Kalyan Jewelers – Failed IPO
The IPO of this company was largely hit by the lockdown that was enforced throughout the country for the second time which forced Kalyan Jewelers to shut down all the stores in India, this made them lose 30% + of their revenue in a single quarter which disappointed the investors.
Issued on March 2021, it can be fairly said that Kalyan Jeweler’s IPO was a failure largely due to their entry timing in the market and not due to any other aspect of their business.
It was one of the latest issues in the line of IPOs hitting the market in October 2021 and it definitely was not a hit. Fino Payments Bank’s IPO was launched in January this year and it has a PE ratio of 86.41 which did not impress the investors at all. The stock is down more than 30% year to date already.
Aditya Birla Sun Life AMC
Aditya Birla Sun Life AMC – Failed IPO
Issued in September 2021 Aditya Birla Sun Life AMC had huge speculations and optimism attached to its IPO both by the investors and the company.
There were only two objectives of the IPO
Achieve the benefit of raising capital from the large public market
Execute the sale of 38,880,000 shares at a good price by selling them to the shareholders
Even though the finances of the company were healthy, the company’s IPO was largely hit by the sentiment of the market which made the share prices fall more than 21% from their issue price.
Suryoday Small Finance Bank
Suryoday Small finance Bank – Failed IPO
Hitting the market in march 2021 when major big names in the market were shooting for IPOs proved out to be costly for this company, it seems having a good book value and good P/E ratio was not enough for Suryoday Small finance Bank and did not help in a better performance at the market. Zoom in to today the company has lost more than 55% of its value and is still on a bearish run just because of bad timing in the market.
FAQs
Which Top company’s IPOs have failed?
Some of the biggest failed IPOs are:
Reliance Power
Paytm
Zomato
RateGain Travel Technologies
Cartrade Tech
Krsnaa Diagnostics
SjS Enterprises
Kalyan Jewellers India
Fino Payments Bank
Aditya Birla Sun Life AMC
Suryoday Small Finance Bank
When is an IPO considered a failure?
When the stock prices of the company do not meet the valuation at which the stock was listed, then the IPO is considered a failure.
Why did Kalyan Jewellers IPO fail?
Analysts believe that the shares of Kalyan Jewellers IPO were overvalued compared to its profitability in the market.
Which is the best IPO?
As per performance, some of the best IPOs in 2022 are:
