Reliance Power and Reliance Infrastructure Share Price Hit Lower Circuits – What Triggered the Fall?

Market Performance

The stock market today saw sharp declines in two of Anil Ambani-led companies.

• Reliance Power share price dropped 5%, closing at ₹46.46 per share.
• Reliance Infrastructure share price also fell 5%, sliding down to ₹275.65.

Both stocks were locked in their lower circuits, raising concerns among investors who closely track developments around the Reliance Group companies.

Why Did Reliance Power and Reliance Infra Shares Fall?

The sudden slide came after the Central Bureau of Investigation (CBI) launched fresh search operations on Saturday at Anil Ambani’s Mumbai residence and the offices of the bankrupt Reliance Communications.

• The searches were carried out following a complaint filed by the State Bank of India over an alleged ₹2,929 crore bank fraud linked to Reliance Communications.
• Ambani, through his spokesperson, denied all allegations, clarifying that the transactions under probe date back more than a decade.
• He stressed that during that time he served only as a non-executive director with no role in daily management.

The spokesperson also highlighted that similar proceedings against five other non-executive directors in the same case had already been withdrawn earlier.

Company Statements on the Probe

Both Reliance Power and Reliance Infrastructure issued separate clarifications on Sunday, assuring investors that the CBI investigation into Reliance Communications will not impact their business or financials.

The companies emphasized:

• No governance or financial impact from Reliance Communications’ loan classification as fraud.
• No operational link with Reliance Communications.
• Anil Ambani has not been on their boards for over 3.5 years.

They reiterated that they operate as independent listed entities with their own management and financial structures.

Reliance Communications’ Case Status

It’s important to note:

• Reliance Communications has been under the supervision of a committee of creditors led by SBI for the past six years.
• A resolution professional has been overseeing the company’s operations.
• The case continues to remain pending before both the National Company Law Tribunal (NCLT) and the Supreme Court.

Summary

The fall in Reliance Power and Reliance Infrastructure share price on Monday wasn’t about their financial health or business performance, but rather about sentiment-driven reaction to regulatory actions tied to Reliance Communications.

While the companies clarified they remain unaffected by the ongoing case, the market’s immediate response showed how sensitive investors remain to regulatory news linked with the Anil Ambani group.