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India Today
5 days ago
- Business
- India Today
ED raids hit Anil Ambani stocks: Reliance Power, Infra sink 5%
Shares of Reliance Power and Reliance Infrastructure fell sharply on Thursday, July 24, following news of Enforcement Directorate (ED) raids linked to a Rs 3,000 crore loan fraud involving companies of the Anil Dhirubhai Ambani Group (ADAG) and Yes stocks dropped over 5% in intraday trade. While Reliance Infrastructure has lost 9.37% in the past five trading sessions, Reliance Power has fallen by 7.41% during the same period. The sudden sell-off came after the ED launched a widespread search operation targeting multiple ADAG-linked to sources, ED officials carried out searches at more than 35 locations in Mumbai and Delhi. These included around 50 companies and over 25 individuals, all under the scanner for alleged money laundering. The case is being investigated under the Prevention of Money Laundering Act (PMLA) and is based on two FIRs filed earlier by the Central Bureau of Investigation (CBI).Officials familiar with the probe said the agency is looking into the diversion of loans worth nearly Rs 3,000 crore that were sanctioned by Yes Bank between 2017 and 2019. ED suspects a possible bribe-for-loan arrangement, as funds were reportedly transferred to entities linked to the Yes Bank promoters just before the loans were issued to ADAG investigation has pointed to several violations in the loan approval process. These include backdated credit approval memos, loans issued without proper due diligence, and investments cleared without following Yes Bank's credit policy. In some cases, loans were disbursed on the same day as the application or even before official sanction. Loans were also allegedly routed through shell companies, many of which had shared addresses and ED's findings are not limited to loan diversion. Inputs from various institutions, including SEBI, National Housing Bank, National Financial Reporting Authority (NFRA), and Bank of Baroda, have also helped strengthen the case. SEBI had earlier flagged a sharp rise in corporate loans given out by Reliance Home Finance Ltd (RHFL), another ADAG company. RHFL's loan book jumped from Rs 3,742.60 crore in FY 2017–18 to Rs 8,670.80 crore in FY 2018–19, raising questions about irregularities and process ED raids come close on the heels of another major development involving Anil Ambani. The State Bank of India (SBI) recently declared Reliance Communications (RCom) and its promoter Anil D. Ambani as 'fraud'. This decision was taken on June 13, 2025, in line with the Reserve Bank of India's guidelines on fraud risk and SBI's internal of State for Finance Pankaj Chaudhary informed Parliament on Monday as per reports that the bank notified the RBI of this classification on June 24 and is now preparing to file a complaint with the CBI. On July 1, RCom's Resolution Professional informed the Bombay Stock Exchange about the bank's decision, fulfilling the company's regulatory total exposure to RCom includes a fund-based loan of Rs 2,227.64 crore, along with interest and other charges since August 2016. Additionally, the bank has a non-fund-based bank guarantee exposure of Rs 786.52 crore. RCom is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. A final ruling from the National Company Law Tribunal (NCLT), Mumbai, is still has also begun personal insolvency proceedings against Anil Ambani under the same law. The matter is being heard by the POWER, INFRASTRUCTURE STATEMENT"It is clarified that Reliance Power and Reliance Infrastructure are a separate and independent listed entity with no business or financial linkage to RCOM or RHFL. RCOM is undergoing Corporate Insolvency Resolution Process as per the Insolvency and Bankruptcy Code, 2016 since over 6 years," said a statement. advertisement"RHFL has been fully resolved pursuant to the judgment of the Hon'ble Supreme Court of India. Similar allegations as those set out in the media reports are sub-judice and pending before the Hon'ble Securities Appellate Tribunal, as per publicly available information," it further added. "Further, Mr. Anil D. Ambani is not on the Board of Reliance Power and Reliance Infrastructure. Accordingly, any action taken against RCOM or RHFL has no bearing or impact on the governance, management, or operations of Reliance Power and Reliance Infrastructure," said the firms Reliance Power and Reliance Infrastructure. - EndsMust Watch
Mint
07-07-2025
- Business
- Mint
Anil Ambani-owned stocks: Reliance Power, Reliance Infrastructure shares surge up to 125% in one year. More steam left?
Anil Ambani group stocks: The turnaround in Anil Dhirubhai Ambani group (ADAG) stocks — Reliance Power and Reliance Infrastructure — was not just limited to companies' financials but rubbed off on shareholders' wealth. From the brink of bankruptcy, both ADAG stocks have rebounded to profitability, helped by effective debt reduction and favourable sectoral dynamics. Reliance Power cleared ₹ 3,872 crore in obligations as a guarantor for Vidarbha Industries Power Ltd, eliminating most of the related debts and corporate guarantees. Meanwhile, Reliance Infrastructure significantly reduced its standalone external debt from ₹ 3,831 crore to ₹ 475 crore. Reliance Power share price has surged 125% from ₹ 29 to above ₹ 65 levels. Meanwhile, Reliance Infrastructure shares have not been far behind, recording an 87% jump in its value. The sharp rally in ADAG stocks has significantly boosted investor wealth. Vinit Bolinjkar Head of Research - Ventura, said Reliance Power's operating portfolio, totaling 5,305 MW, includes the 3,960 MW Sasan Power Ltd, the world's largest integrated coal-based power plant. The company is also accepting EPC orders for joint development of renewable energy projects, contributing to its improving financial performance. The same is reflected in the company's financials. For the last quarter of FY25, Reliance Power had swung to the black, posting a profit of ₹ 126 crore, as against a loss of ₹ 397.56 crore in Q4 FY24. Total income dipped to ₹ 2,066 crore in the fourth quarter from ₹ 2,193.85 crore in the same period a year ago. "With a strong outlook for the power sector and a fresh start following restructuring, investor confidence is on the rise," Boljinkar said. Anubhav Sangal, Sr. Research Analyst at Bonanza, said that Reliance Infra is seeing green shoots in revival through successful restructuring and debt reduction as well as bagging robust opportunities with the recent Dassault collaboration in the helm. These measures according to experts have fortified Reliance Infra's balance sheet, setting a solid foundation for future growth. "Beyond its power distribution operations in Delhi, the company is expanding into defence manufacturing infrastructure, including the Mumbai Metro project. A recent JV with the US-based Coastal Mechanics for MRO services in India, along with export orders from global defence companies, could drive enhanced future performance," according to Boljinkar. The company is also targeting ₹ 3,000 crore from the export of 155 mm ammunition and aggregates by the end of the financial year 2027, as per a PTI report. As per PTI sources, Reliance has been able to make inroads in the highly competitive markets of the European Union and South East Asia. Recently, Reliance Defence also announced a strategic partnership with Düsseldorf-based Rheinmetall AG. The collaboration between the companies will include the supply of explosives and propellants for medium and large calibre ammunition to Rheinmetall by Reliance. Reliance Infrastructure also posted a financial turnaround, reporting a net profit of ₹ 4,387 crore in the March quarter, mainly aided by a reduction in expenses. It had posted a net loss of ₹ 220.58 crore in the January-March period of 2023-24. Analysts remain largely positive on these ADAG stocks, expecting the trend to sustain, albeit the pace could slow down. "Both companies are entering a new chapter following their restructuring efforts, and their growth prospects are backed by strong industry trends and their deep expertise in their respective sectors, making this rally sustainable," said Boljinkar. Commenting on individual stocks, Sangal said we could still see space left for the valuation to go upwards for Reliance Power shares, however, at a slower pace than we saw earlier. For Reliance Infra, the analyst said, "We believe that Reliance Infrastructure is poised to see meaningful revenue visibility through current orders and potential future orders that will take reliance infra towards a meaningful value unlocking."
News18
11-06-2025
- Business
- News18
ADAG Stocks On Fire: Reliance Power Soars 70%, Reliance Infra 60% In One Month; Know Why
Last Updated: Stocks of Anil Dhirubhai Ambani Group —Reliance Power and Reliance Infrastructure—are witnessing a surge; Key reasons and should you buy? Stocks of the Anil Dhirubhai Ambani Group (ADAG)—Reliance Power and Reliance Infrastructure—are witnessing a sharp surge. Reliance Power shares jumped over 5% in morning trade on Wednesday, extending their monthly gain to more than 70%. Meanwhile, Reliance Infrastructure rose 1% early today, taking its monthly gains close to 60%. Key Drivers Behind The ADAG Stock Rally The rally in Reliance Power and Reliance Infrastructure stocks has been fuelled by a series of positive developments. For Reliance Power, the turnaround in Q4 results played a pivotal role. The company reported a consolidated profit of ₹125.57 crore for Q4FY25, compared to a loss of ₹397.56 crore a year ago. Positive project wins also boosted sentiment. On May 28, SJVN Limited, a Navratna PSU, awarded Reliance NU Energies Private Limited—a Reliance Power subsidiary—a letter of award for a 350 MW solar power project and a 175 MW/700 MWh battery energy storage system (BESS) connected to the interstate transmission system (ISTS). Reliance Infrastructure, meanwhile, strengthened its position in the defence sector. Post-market hours on Tuesday, the company announced an expansion of its strategic partnership with Germany's Diehl Defence. Anil D. Ambani, founder and chairman of the Reliance Group, and Helmut Rauch, CEO of Diehl Defence, met to discuss specifics on guided and terminally guided munitions as part of a long-standing agreement signed in 2019. What's driving investor interest? 'The Reliance Infrastructure–Diehl Defence venture marks a significant entry into India's growing defence sector, reinforcing the group's long-term growth prospects." For Reliance Power, the turnaround story has gained momentum. The company's 25-year solar and battery storage PPA with Bhutan's Druk Green Power—Asia's largest such project—along with a Q4 FY25 pre-tax profit of ₹67.15 crore (compared to a pre-tax loss of ₹461.35 crore in Q4 FY24) have improved its outlook. Reliance Power's debt-to-equity ratio has dropped to 0.88:1 in FY25, down from 1.61:1 in FY24, marking one of the best in the sector. Debt reduction has also been a key focus. Reliance Infrastructure has nearly eliminated its standalone net debt, while Reliance Power has strengthened its balance sheet through preferential allotments. The recent NCLAT stay on insolvency proceedings against Reliance Power and the resolution of Reliance Capital's insolvency through a ₹9,650 crore acquisition by IndusInd International Holdings Ltd have lifted key legal overhangs, further fueling investor optimism. 'These factors have created the perfect backdrop for a re-rating of ADAG group stocks," Srivastava added. 'The market is re-evaluating these companies as turnaround stories with strong potential, rather than distressed assets." Overall, improved earnings, strategic wins, reduced debt, and legal relief have paved the way for a strong revival, making the ADAG group stocks an attractive opportunity for investors betting on long-term growth.
Mint
23-05-2025
- Business
- Mint
Reliance Infrastructure to Reliance Power: Why Anil Ambani-owned Reliance ADAG stocks are skyrocketing? EXPLAINED
Reliance ADAG group stocks in focus: Anil Dhirubhai Ambani Group (ADAG) stocks, including Reliance Home Finance, Reliance Infrastructure, and Reliance Power, rallied sharply in Friday's trade (May 23). Reliance Home Finance shares surged 10% to ₹ 3.63 apiece, Reliance Power stock jumped 18.5% to a 6-month high of ₹ 52.82, while Reliance Infrastructure share price climbed 10% to ₹ 311 per share. The broad-based rally in ADAG stocks was driven by multiple positive developments that boosted investor sentiment and triggered a sharp spike in trading volumes on Dalal Street. Reliance Infrastructure-promoted Reliance Defence and Düsseldorfbased Rheinmetall AG on May 22 entered a strategic partnership in the field of ammunition. This marks the third major partnership for Reliance Defence, following its successful strategic alliances with Dassault Aviation and the Thales Group of France, the company said in a press release. 'In order to support this collaboration, Reliance Defence Ltd will set up a Greenfield manufacturing facility in the Watad Industrial Area, of Ratnagiri, Maharashtra. In India, the new state-of-the-art facility will make a significant contribution to supplying the country's armed forces. The defence manufacturing complex will contribute in supporting India's ambitious defence export target of ₹ 50,000 crore by 2029,' Reliance Infra added. Additionally, all eyes are on Reliance Infrastructure stock ahead of its Q4 results later in the day. On May 20, Anil Ambani-owned Reliance Power executed a preferential allotment of equity shares aggregating ₹ 43.89 crore to two entities—Reliance Infrastructure Limited and Basera Home Finance Private Limited. According to an exchange filing, the company allotted a total of 1.33 crore fully paid-up equity shares at ₹ 33 per share (inclusive of a ₹ 23 premium). The shares were issued under the SEBI (ICDR) Regulations, following the exercise of rights attached to previously issued warrants. In addition, Reliance Power recently announced a strategic international venture with Druk Holding and Investments Limited (DHI), the investment arm of the Royal Government of Bhutan. The two companies will jointly develop Bhutan's largest solar power project, with a planned installed capacity of 500 MW. In October 2024, Reliance Enterprises—jointly promoted by Reliance Power Limited and Reliance Infrastructure Limited—initiated a strategic partnership with DHI to develop solar and hydropower projects in Bhutan. The ₹ 2,000 crore project will be developed under a 50:50 joint venture on a Build-Own-Operate (BOO) basis. The company stated that the agreement—marked as the largest private sector FDI in Bhutan's solar energy sector to date—was formalized through a commercial term sheet with Green Digital Private Limited (GDL), a DHI-owned entity. Reliance Power said its total clean energy pipeline stands at 2.5 GWp of solar and over 2.5 GWh of BESS, making it India's largest player in the integrated solar + BESS segment. The turnaround in financial performance during the March quarter has also fueled renewed investor interest in the stock on Dalal Street. For the quarter ended March, the company posted a consolidated net profit of ₹ 126 crore, a significant recovery from a loss of ₹ 397.56 crore in the same quarter last year, driven by lower finance costs and reduced operating expenses. Total operating expenses fell from ₹ 3,575 crore in Q4FY24 to ₹ 2,108 crore in Q4FY25. However, revenue from operations declined to ₹ 2,066 crore from ₹ 2,193.85 crore year-on-year, primarily due to lower realizations. Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
