Reliance Infrastructure shares zoom 5%; here's why

Reliance Infrastructure shares rallied 4.66% to the day's high of Rs 358 on the BSE on Monday, following two key announcements made on July 27: the conclusion of Enforcement Directorate (ED) action across all company locations, and the unveiling of a comprehensive growth strategy in Defence, Aerospace, and Renewable Energy by the leadership of Reliance Infrastructure and Reliance Power.

Here are the details of the updates shared by the company:


- ED action concludes with no impact on business operations

On Sunday, Reliance Infrastructure announced that the ED’s action had concluded at all company locations. The company stated that all officials fully cooperated with authorities and will continue to do so in the future. It further clarified that the ED action has had no impact on its business operations, financial performance, governance, employees, or any stakeholders.

The company noted that the action appears to be related to decade-old transactions involving Reliance Communications Ltd (RCOM) and Reliance Home Finance Ltd (RHFL)—two entities with which Reliance Infrastructure has no financial or business linkage.

RCOM is currently undergoing insolvency proceedings under the IBC since 2016, while RHFL has been fully resolved following a Supreme Court judgment.

Reliance Infrastructure emphasized that Anil Ambani is not on its Board and that proceedings involving RCOM or RHFL have no bearing on its governance or operations.

The company reaffirmed that it continues to operate normally and remains focused on its business plans and delivering long-term value to all stakeholders.

- Group leadership unveils Rs 18,000 crore strategic growth plan


Alongside the ED update, more than 100 senior leaders from Reliance Infrastructure and Reliance Power convened to outline the group’s next phase of growth. This follows recent approval by both company boards to raise Rs 18,000 crore via equity and debt to fund expansion across Defence & Aerospace, Power Distribution, and Renewable Energy.

Both companies—Reliance Infrastructure and Reliance Power—are nearly debt-free, with net worths of Rs 14,883 crore and Rs 16,431 crore, respectively, and a combined public shareholding base of over 50 lakh investors.

Key focus areas for Reliance Infrastructure include:


- Defence & Aerospace: Plans to manufacture Falcon 2000 business jets in India in collaboration with Dassault Aviation, along with strategic partnerships with US-based Coastal Mechanics and Germany’s Rheinmetall AG and Diehl Defence for advanced military manufacturing.

- Power Distribution: Serving over 53 lakh households in Delhi via BSES, with continued emphasis on smart and sustainable power delivery.
- Green Energy Goals: Targeting clean power sourcing for Delhi over the next five years.

For Reliance Power, the focus remains on:


Renewable Energy: Operating a portfolio of ~5.3 GW and securing ~3.3 GWh of Solar and Battery Energy Storage System (BESS) projects—Asia’s largest solar-plus-storage initiative.

The leadership reiterated its commitment to converting challenges into opportunities, staying aligned with the vision of the late Shri Dhirubhai Ambani.

Reliance Infrastructure shares had closed at their 5% lower circuit at Rs 342.05 on BSE on Friday.

Also read: NSDL IPO: Issue opens on July 30, here’s what you need to know about GMP, issue details

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)