Reliance Infrastructure Limited (RInfra) and Reliance Power have issued clarifications regarding recent Central Bureau of Investigation (CBI) action on Reliance Communications Limited (RCom) and Mr. Anil D Ambani. Both companies emphatically stated that these events have no impact on their business operations, financial performance, shareholders, employees, or stakeholders.

Key Points of Clarification

• Separate Entities: Both RInfra and Reliance Power emphasized their status as independent listed companies with no business or financial ties to Reliance Communications.

• Management Independence: Anil Ambani has not been on the Board of Reliance Power for more than three and a half years.

• Current RCom Management: RCom is presently managed under the supervision of a Committee of Creditors led by State Bank of India (SBI) and overseen by a Resolution Professional.

• Legal Status: The matter remains sub judice, pending before the National Company Law Tribunal (NCLT) and other judicial forums, including the Supreme Court, for the past six years.

Companies' Positions

Both Reliance Power and Reliance Infrastructure took the opportunity to clarify several points:

• They are separate and independent listed entities from Reliance Communications.
• The companies reaffirmed their commitment to focusing on their respective business plans and creating value for all stakeholders.

Background

Reliance Infrastructure Limited is a major player in the infrastructure sector, developing projects through Special Purpose Vehicles (SPVs) in areas such as Power, Roads, Metro Rail, and Defence. The company is known for providing Engineering and Construction (E&C) services for various infrastructure projects.

Reliance Power is an Indian power generation and coal resources company, part of the Reliance Anil Dhirubhai Ambani Group.

In conclusion, both Reliance Power and Reliance Infrastructure's statements serve to distance the companies from the ongoing investigations into Reliance Communications, asserting their operational and financial independence. The companies maintain their focus on their core business activities and commitment to stakeholder value creation, unaffected by the recent CBI actions.

Shares of Reliance Power and Reliance Infrastructure have been on a remarkable upward trajectory, hitting upper circuit limits for three consecutive sessions and gaining 15.7% each. The stocks closed at Rs 50.08 and Rs 303.70 respectively, marking a significant rally in the Reliance Group companies.

Reliance Power's Joint Venture in Bhutan

The surge in Reliance Power's stock price was primarily driven by the incorporation of GDL - Reliance Solar Pte Ltd in Bhutan. This new entity is a 50:50 joint venture between Green Digital Private Limited and Reliance Enterprises Private Limited. Through this structure, Reliance Power has secured an indirect 25% stake in the venture, signaling its expansion into the renewable energy sector in Bhutan.

Reliance Infrastructure's Solar Project Award

Reliance Infrastructure received a major boost with the announcement of a Letter of Award from NHPC for a substantial solar project. The company has been tasked with developing a 390 MW solar project coupled with a 780 MWh Battery Energy Storage System (BESS). The project comes with a tariff of Rs 3.13/kWh, highlighting its competitive positioning in the renewable energy market.

Strengthening Reliance Group's Renewable Portfolio

These developments have significantly bolstered the Reliance Group's position in the renewable energy sector. With these additions, the group now boasts over 3 GWp of solar capacity and a 3.5 GWh storage pipeline. This expansion has positioned Reliance Group as India's largest integrated Solar + BESS player, showcasing its commitment to clean energy solutions.

Market Impact

The positive news flow has resulted in strong investor interest, reflected in the rapid stock price appreciation of both Reliance Power and Reliance Infrastructure. The consecutive upper circuit hits underscore the market's optimistic outlook on the group's renewable energy initiatives.

Conclusion

As India continues to push for greater adoption of renewable energy, the strategic moves by Reliance Power and Reliance Infrastructure appear to be well-timed. The market's enthusiastic response suggests that investors are keenly watching the group's expansion in the solar and energy storage sectors, potentially seeing these developments as key drivers for future growth.