In India, Reliance Power and Reliance Infrastructure shares fell 5% after investor concerns over regulatory scrutiny linked to Reliance Communications. Both firms clarified that their operations remain unaffected, with no financial or governance linkage to the case.
Shares of Reliance Power and Reliance Infrastructure declined sharply in India on Monday, with both companies hitting a 5% lower circuit in early trade. Reliance Power closed at ₹46.46, while Reliance Infrastructure slipped to ₹275.65 on the NSE.
The market reaction followed heightened regulatory scrutiny linked to Reliance Communications and its former promoter Anil D. Ambani. However, Reliance Power and Reliance Infrastructure issued formal statements clarifying that they are independently listed companies, with no operational, financial, or governance ties to Reliance Communications.
The companies emphasized that Anil Ambani has not been associated with Reliance Power’s Board for more than three and a half years. As such, regulatory action related to Reliance Communications has no bearing on their management, financial performance, or strategic direction.
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Both firms reiterated their commitment to stakeholders, with Reliance Power focusing on its 5,305 MW generation portfolio, including the 3,960 MW Sasan Power Ltd., one of the world’s largest integrated coal-based power plants. Meanwhile, Reliance Infrastructure continues to operate across high-growth sectors such as roads, metro rail, power distribution, and defense through various special-purpose vehicles (SPVs).
Market experts note that while short-term volatility has impacted share prices, the long-term fundamentals of both companies remain tied to sector-specific growth. In particular, India’s push toward infrastructure development and stable energy capacity may provide resilience for both Reliance Power and Reliance Infrastructure.
At the same time, banks including State Bank of India and Bank of India have intensified oversight of Reliance Communications due to legacy loan exposures, with insolvency proceedings ongoing. However, Reliance Power and Reliance Infrastructure stressed that these developments do not affect their governance or operations.
Both companies reaffirmed their focus on executing business plans and creating long-term shareholder value, despite current market sentiment.
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