Meanwhile, the shares of other Anil Ambani-led group firms, Reliance Home Finance and Reliance Communications also hit their 5% lower circuit. They fell to the day’s low of Rs 4.03 and Rs 2.32 respectively.
The company on Sunday had informed the exchanges that Anil Ambani has resigned from the board of directors of Reliance Power and that the SEBI order does not have any bearing on the company’s operations.
“Reliance Power Ltd. was not a notice or party to the proceedings before SEBI in which the Order is passed. No directions are given in the Order against Reliance Power Ltd. Mr. Anil Ambani had resigned from the board of directors of Reliance Power Ltd. pursuant to the interim order dated 11th February 2022 passed by SEBI in the same proceedings. Therefore, the Order dated 22nd August 2024 passed by the SEBI has no bearing whatsoever on the business and affairs of Reliance Power Ltd,” said the company in a filing.
Besides barring Ambani and 26 other entities, including former key officials of Reliance Home Finance from the securities market for five years, Sebi has imposed a penalty of Rs 25 crore on Ambani.Also read: LG Electronics weighs India IPO to help chase $75 billion goal
Also, the regulator barred Reliance Home Finance from the securities market for six months and slapped a fine of Rs 6 lakh on it.
In its 222-page long order, the market regulator’s investigation had concluded that key managerial personnel of Reliance Home Finance (RFHL), including Anil Ambani, siphoned off funds from the listed company (RHFL) by structuring them as ‘loans’ to credit unworthy conduit borrowers, and in turn, to onward borrowers, all of whom have been found to be ‘promoter linked entities’.
Recently, the stock had surged nearly 21% in 4 sessions after there were reported talks of Adani Power to acquire its 600 MW Butibori Thermal Plant, according to a report by Mint.
According to the report, Adani Power is in conversation with Vidarbha Industries Power, a division of Reliance Power, for this acquisition that is expected to be valued between Rs 2,400 crore and Rs 3,000 crore, which equates to approximately Rs 4 crore to Rs 5 crore per MW.
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