Reliance Power Limited (RPower) has issued a statement addressing the recent action by the Enforcement Directorate (ED), emphasizing that the investigation has concluded at all company locations with no impact on its business operations or financial performance.

ED Action Concluded

In a media release dated July 27, RPower announced that the ED's action has concluded at all of its locations. The company stated that it has fully cooperated with the authorities throughout the process and will continue to do so if required.

No Impact on Business Operations

RPower emphasized that the ED's action has not affected its:

• Business operations
• Financial performance
• Shareholders
• Employees
• Other stakeholders

The company continues to operate normally, focusing on its business plans and commitment to creating value for all stakeholders.

Clarification on Allegations

RPower provided important clarifications regarding the nature of the ED's investigation:

1. The allegations appear to concern transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL) that are over 10 years old.
2. RPower is a separate and independent listed entity with no business or financial linkage to RCOM or RHFL.
3. RCOM has been undergoing Corporate Insolvency Resolution Process for over 6 years.
4. RHFL has been fully resolved pursuant to a judgment of the Supreme Court of India.
5. Similar allegations are currently sub-judice and pending before the Securities Appellate Tribunal.

Corporate Governance

The company made several points to distinguish itself from related entities:

• Anil D. Ambani is not on Reliance Power's board.
• Any action against RCOM or RHFL has no bearing on RPower's governance, management, or operations.

Company Profile

Reliance Power, part of the Reliance Group, is a leading private sector power generation company in India. It operates a portfolio of 5,305 megawatts, including the 3,960-megawatt Sasan Power Limited, which is described as 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.

RPower reaffirmed its commitment to its business plans and creating value for all stakeholders as it continues its normal operations.

Reliance Power , a prominent player in India's private power generation sector, has seen its shares tumble 15% over the past month, with the stock currently trading at Rs 56.72. The decline comes in the wake of Enforcement Directorate (ED) raids on premises linked to Anil Ambani, raising concerns among investors.

Stock Performance and Technical Analysis

The company's stock hit lower circuit limits for two consecutive sessions, contributing to the recent downturn. Despite the current slump, Reliance Power shares still maintain a 30% gain and a 47% increase over the past six months. Technical analysts have identified immediate support at Rs 54.00, with resistance levels near Rs 64.00-72.00.

ED Probe and Company Response

The stock's decline follows ED raids related to a Rs 3,000.00 crore Yes Bank loan probe. However, Reliance Power has moved swiftly to address investor concerns. In a media release, the company stated:

"The said actions have absolutely no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power."

The company clarified that the media reports appear to pertain to allegations concerning transactions of Reliance Communications Limited (RCOM) or Reliance Home Finance Limited (RHFL), which are over 10 years old. Reliance Power emphasized its status as a separate and independent listed entity with no business or financial linkage to RCOM or RHFL.

Financial Performance and Debt Reduction

Despite the recent stock price volatility, Reliance Power has shown improvements in its financial performance. The company reported a net profit of Rs 44.68 crore in its latest quarterly results, a significant turnaround from the Rs 97.85 crore loss in the same period last year.

In a move to strengthen its financial position, Reliance Power has reduced its debt by over Rs 5,300.00 crore. The company has also announced plans to raise Rs 9,000.00 crore through equity and debt instruments, signaling its commitment to financial stability and growth.

Management Changes and Future Outlook

The company's media release also noted that Mr. Anil D. Ambani is not on the Board of Reliance Power, further distancing the company from the ongoing probe. Reliance Power reiterated its focus on business plans and commitment to creating value for all stakeholders.

As the situation unfolds, investors and market watchers will be closely monitoring Reliance Power's performance and any further developments related to the ED investigation. The company's ability to maintain operational stability and continue its financial improvement will be crucial in regaining investor confidence in the coming months.