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ADAG stocks, Reliance Infra, Reliance Power hit lower circuits; here's why
Shares of Anil Dhirubhai Ambani Group (ADAG) companies, Reliance Infrastructure (₹360.05) and Reliance Power (₹59.70), were locked in the 5-per cent lower circuit on the BSE in Thursday's intraday trade amid reports of Enforcement Directorate (ED) raids across 35 locations linked to Reliance Anil Ambani Group in money laundering probe.
Till 12:41 PM; a combined 1.48 million equity shares changed hands on Reliance Infrastructure counter. There were pending sell orders for 1.3 million shares on the NSE and BSE.
On the Reliance Power counter there were pending sell orders for 7.53 million shares on the NSE and BSE. A combined 12.18 million shares changed hands, the exchange data shows.
Currently, Reliance Infrastructure and Reliance Power are trading under 'T' or Trade-for-Trade (T) group on the BSE. The T group is a surveillance measure that requires securities to be settled on a trade-to-trade basis.
Meanwhile, the stock price of Reliance Infrastructure (up 143 per cent) and Reliance Power (up 184 per cent) had zoomed more than 100 per cent from their respective 52-week lows touched on July 24, 2024.
According to a Business Standard report, the Enforcement Directorate (ED) on Thursday raided several locations connected to Anil Ambani as part of its ongoing investigation into the Yes Bank loan fraud case. ED's action came in after State Bank of India (SBI) decided to classify telecom company Reliance Communications as 'fraud' and will report its former director, Anil Ambani, to the Reserve Bank of India (RBI). The ED is currently examining over 50 companies and 25 individuals believed to be part of the network.
Meanwhile, Reliance Infrastructure in its FY25 annual report said that during the financial year 2020-21, the company, as a part of settlement with Yes Bank Limited, had sold its investment including Property, plant and equipment at Santacruz at a total transaction value of ₹1,200 crore through the conveyance deed entered with Yes Bank Limited. The company is entitled to exercise its rights/option to buy back this property after 8.5 years from the date of sale, subject to fulfillment of the condition precedents at an agreed price as per option agreement entered between parties.
Business Overview
Reliance Infrastructure is a diversified infrastructure company, primarily engaged in providing comprehensive engineering & construction (E&C) services across multiple sectors including power, transportation, urban infrastructure and defence. Multiple projects are undertaken through Special Purpose Vehicles (SPVs), permitting focused execution and efficient management.
Reliance Power, a constituent of the Reliance Group, is a prominent private sector power generation company in India. The company has built a diversified portfolio encompassing thermal, solar and hydroelectric power projects, with the objective of developing, constructing and operating power projects both domestically and internationally.
The company is in the business of developing and operating power generation projects, along with the development of coal mines linked to these projects. Reliance Power has built a balanced portfolio including both power plants and coal assets. As of now, power projects with a total capacity of approximately 5,305 MW have been successfully commissioned, while the remaining projects are at different stages of planning and development.
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