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Shares of Reliance Power and Reliance Infrastructure slipped sharply on Monday, each hitting their 5% lower circuits, as investor sentiment weakened following news of the Central Bureau of Investigation’s (CBI) probe into an alleged Rs 2,929 crore bank fraud involving Reliance Communications.
The Reliance Infra Share Price has shown mixed performance in recent sessions. Reliance Power’s stock fell to Rs 46.46, while Reliance Infrastructure dropped to Rs 275.65 on the BSE in early trade, despite company statements over the weekend reassuring investors that their businesses remain unaffected.
The sell-off followed the CBI’s search operations conducted on Saturday at industrialist Anil Ambani’s Mumbai residence and offices of the now-bankrupt Reliance Communications. The searches came after a complaint filed by the State Bank of India, which flagged loan transactions worth nearly Rs 2,929 crore as fraudulent.
Ambani categorically denied the allegations, stressing that he would contest any charges brought forward. He also emphasized that the transactions under scrutiny occurred more than a decade ago when he served only as a non-executive director, without involvement in daily management.
Investors are closely tracking the Reliance Power Share Price for near-term trends. The spokesperson further pointed out that similar proceedings against five other non-executive directors in the same case had already been dropped.
On Sunday, both Reliance Power and Reliance Infrastructure issued separate clarifications, highlighting that the classification of Reliance Communications’ loans as fraud by the Bank of India has no impact on their financials, operations, or governance.
Trading volumes in Reliance Infra Shares remain high amid sector volatility. The companies underlined that Ambani has not served on their boards for over three-and-a-half years and that both operate as independent listed entities with no financial or operational connections to Reliance Communications.
They also reminded investors that Reliance Communications has been under the control of a committee of creditors led by SBI and a resolution professional for the past six years, with its insolvency proceedings still pending before the National Company Law Tribunal (NCLT) and the Supreme Court.
Also Read: ED Uncovers Rs. 68 Crore Fake Bank Guarantee Scam Linked to Anil Ambani Group
Despite these clarifications, market confidence continued to be weak, with both stocks locked at their lower circuits. On Friday, Reliance Power had closed 5% down, and Reliance Infrastructure was down 3.5% amid fears of regulatory scrutiny.
The Anil Ambani CBI Probe has raised fresh concerns among market participants. The new developments come only weeks after the Enforcement Directorate (ED) raids at 35 locations associated with the Reliance Group in connection with money laundering and fund diversion, further pressuring investor sentiment.
While Reliance Power and Reliance Infrastructure claim that their operations are insulated from the CBI probe, the level of regulatory risk is likely to overhang their share prices in the short term.
Reliance Communications continues to struggle with debt and regulatory challenges. Analysts believe there will be continuing investor caution until there is greater clarity around the results of the investigations involving Anil Ambani and Reliance Communications.
