Reliance Power, Reliance Infra shares Hit Lower Circuit Limits; Tumble 5% Each

Shares of Reliance Power and Reliance Infra dropped 5% each, hitting respective lower circuit limits on Thursday following ED raids as part of an alleged ₹3,000 crore loan fraud relating to a money laundering case against the companies linked to Anil Ambani.

The stock of Reliance Power cracked 5% to hit the lowest trading permissible limit for the day at ₹59.70 apiece on the BSE.

Shares of Reliance Infrastructure also tanked 4.99% to hit the lower circuit limit of ₹360.05.

The Enforcement Directorate on Thursday conducted simultaneous raids as part of an alleged ₹3,000 crore worth bank loan fraud linked money laundering case against the companies of Reliance Group chairman Anil Ambani, official sources said.

More than 35 premises in Mumbai belonging to 50 companies and 25 persons are being searched under the Prevention of Money Laundering Act (PMLA), they said.

A Delhi-based investigation unit of the ED is carrying out the investigation.

ED sources said they are probing allegations of illegal loan diversion of around ₹3,000 crore, given by Yes Bank, to the group companies of Anil Ambani between 2017 and 2019.

Both Reliance Infrastructure and Reliance Power later asserted that the said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the firms.

"The said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power," a BSE filing said.

The media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old, the filing said.

It is clarified that Reliance Power is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL, the company noted.

The filing further said that RCOM is undergoing a corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016, for over 6 years.

RHFL has been fully resolved pursuant to the judgment of the Supreme Court of India, the filing added.

Similar allegations as those set out in the media reports are sub-judice and pending before the Securities Appellate Tribunal, as per publicly available information.

The filing also said Anil D Ambani is not on the Board of Reliance Power. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power.

Reliance Power continues to focus on its business plans and remains committed to creating value for all stakeholders, the filing added.

In a separate filing, Reliance Infrastructure also clarified that the company is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL.