Reliance Industries shares nosedive 4% to hit 52-week low; here’s why

Shares of Reliance Industries Ltd (RIL) fell sharply by 4% in early trade on Monday, with the share price of the country’s most valued stock slipping to its 52-week low. The RIL shares got hammered today amid a report that the oil-to-telecom conglomerate faces risk of fine up to ₹125 crore as it is likely to miss a deadline to set up a battery cell plant. The weakness in the broader market amid sustained fund outflows and global economic uncertainties in the backdrop of the U.S. government’s tariff proposal also dented sentiments.  

Continuing its losing streak for the second straight session, RIL share price dropped as much as 3.6% to hit a 52-week low of ₹1,156 on the BSE. The market capitalisation of the most valued stock declined to ₹15.74 lakh crore.

The billionaire Mukesh Ambani-led stock has been consistently under stress, falling 7% in one month and nearly 5% year-to-date (YTD). The bluechip stock is down 28% from its 52-week high of ₹1,608.95 touched on July 8. 2024. The counter has lost 23% in a year and 22% in the past six months.

Reliance New Energy Ltd., the clean energy arm of the Reliance group, faces risk of penalty up to ₹125 crore after it failed to set up a battery cell plant that formed part of Indian Prime Minister Narendra Modi’s push to cut import dependence, as per Bloomberg report.

The company was among entities that won a bid for setting up battery cell manufacturing in 2022 under the government’s production linked incentive (PLI) program. In the bidding conducted in March 2022, three beneficiary firms — Reliance New Energy, Ola Electric Mobility and Rajesh Exports — were allocated a total capacity of 30 gigawatt-hour (GWh), and the agreements for that round were signed in July 2022. Under the PLI scheme, manufacturers were eligible for ₹18,100 crore worth of subsidies on meeting milestones for the project. The firms were required to achieve a minimum ‘committed capacity,’ along with local value addition of 25% within two years of the agreement, and 50% within five years, as per the report.

The government had approved the PLI scheme for manufacturing of Advanced Chemistry Cell (ACC) in May 2021 in an effort to boost domestic manufacturing of battery cells. The move was aimed at bringing down battery prices, which will reduce costs of electric vehicles.

Recently, Reliance Industries’ subsidiary Reliance New Energy Battery was awarded 10 GWh ACC capacity in the second round of bidding under the PLI ACC (Advanced Chemistry Cell) scheme. A cumulative capacity of 40 GWh has been awarded to four selected beneficiary firms out of 50 GWh capacity. For the latest round, the Ministry of Heavy Industries received bids from seven bidders including Reliance, Amara Raja, Waaree Energies, Lucas TVS, JSW Neo Energy, Anvi Power and ACME Cleantech Solutions.

RIL receives tax notice of ₹88 lakh

In a separate development, the conglomerate has received a tax notice of nearly ₹88 lakh from the Assistant Commissioner of State Tax (SGST), Jamnagar. The tax order has been passed alleging incorrect availment of input tax credit by the company.

“The company intends to file an appeal against the order,” it said in a BSE filing on February 28, 2025.

As per the company, the financial impact of the order is to the extent of the penalty levied. “There is no impact on operations or other activities of the company due to the order.”

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