Reliance Power Limited (RPower) and Reliance Infrastructure Limited (RInfra) shares surged to hit their 5% upper circuits for the second consecutive trading session, outperforming broader market indices.

Stock Performance

Reliance Infrastructure reached an intraday high of Rs 278.95, gaining Rs 13.25, while Reliance Power climbed to Rs 46.22. The rally in RPower shares was primarily driven by recent developments in its renewable energy business.

Renewable Energy Expansion

Reliance Power has made significant strides in expanding its clean energy portfolio. The company recently incorporated GDL – Reliance Solar Pte Ltd, a joint venture in Bhutan's Gelephu Mindfulness City. This 50:50 partnership between Green Digital Private Ltd and Reliance Enterprises Private Ltd has bolstered RPower's renewable energy pipeline, which now includes:

• Over 3 GW of solar DC capacity
• 3.5 GWh of battery energy storage system capacity

This expansion underscores Reliance Power's commitment to sustainable energy solutions and its strategic focus on the growing renewable sector.

Regulatory Scrutiny

While the stocks are rallying, it's worth noting that the Enforcement Directorate (ED) has been investigating alleged money laundering in a Rs 17,000 crore bank loan fraud case involving Anil Ambani's Reliance Group. As part of the investigation, the ED has:

• Questioned senior executives of the Reliance Group
• Requested loan details from nearly 20 banks, including State Bank of India and Bank of Baroda

Annual Performance

Despite recent regulatory challenges, both Reliance Power and Reliance Infrastructure have shown strong performance over the past year:

These returns significantly outpaced the performance of major Indian indices, with both the Nifty and Sensex posting negative 3.00% returns over the same period.

The robust gains in RPower and RInfra shares, coupled with Reliance Power's expanding renewable energy portfolio, suggest investor optimism despite ongoing regulatory scrutiny. However, investors should remain cautious and monitor developments in the ED investigation, which could potentially impact the companies' future performance.

Reliance Power Limited (RPL) has issued a clarification regarding recent media reports concerning the Central Bureau of Investigation's (CBI) action on Reliance Communications Limited (RCom) and Anil D Ambani. The company emphatically stated that these developments have no impact on its business operations, financial performance, or stakeholders.

Key Points of Clarification

• Separate Entity: RPL emphasized its status as a separate and independent listed entity with no business or financial linkage to Reliance Communications.

• Management Changes: Anil D Ambani has not been on Reliance Power's Board for more than 3.5 years. He also resigned from Reliance Communications' Board in 2019.

• Historical Context: The complaint filed by State Bank of India (SBI) pertains to matters dating back more than 10 years when Ambani was a Non-Executive Director at RCom with no involvement in day-to-day management.

• Current RCom Management: Reliance Communications is currently managed under the supervision of a Committee of Creditors led by SBI and overseen by a Resolution Professional.

Reliance Power's Operations

RPL reaffirmed its focus on its business plans and commitment to creating value for all stakeholders. The company operates a substantial power generation portfolio:

• Sasan Power Limited is the world's largest integrated coal-based power plant.
• Sasan Power has consistently ranked as the best operating power plant in India for the past seven years.

Recent Corporate Development

In a separate disclosure, Reliance Power informed that it has received an application from Reliance Capital Limited seeking re-classification of its status from promoter group to public. This change is consequent to the implementation of Reliance Capital Limited's Resolution Plan by IndusInd International Holdings Limited, under the Insolvency and Bankruptcy Code, 2016.

Reliance Power continues to operate independently, focusing on its power generation business and maintaining its commitment to stakeholder value creation despite the ongoing legal proceedings involving its former parent company and ex-director.