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The Anil Ambani-led Reliance Power completed a decade since its public listing on the exchange. The scrip created ripples in the market for enjoying a valuation higher than existing power generation companies. On February 11, 2008, the company made its debut on the exchanges with a listing price of Rs 232.7 per share. The stock, however, was on a steady downfall. Now the price is at Rs 47.4 per share. The company's stock performance left the Street wondering if it was over-priced or if the existing power companies' stocks were under-valued.
But, it was not long before the initial optimism fizzled out. A bullish outlook on India’s energy story and R-Power’s mega expansion plans drove the aggressive pricing. R-Power had projected an ambitious capacity of more than 28,100 megawatt by 2016. At present, the company operates at a total capacity 5,945 Mw. Part of its capacity addition plans, two of the three ultra-mega power plants that R-Power won through competitive bidding, never saw the light of the day due to various reasons including land acquisition and coal supply issues.