Anil Ambani group stocks Reliance Power, Reliance Infra and others slide up to 5%. What’s behind the drop?

Core Viewpoint - The Indian government is intensifying its investigation into the Reliance Anil Dhirubhai Ambani Group (ADAG) through the Serious Fraud Investigation Office (SFIO), following previous probes by multiple agencies regarding alleged corporate governance violations and fund diversions [1][13]. Group 1: Investigations and Allegations - The SFIO's investigation is part of a broader crackdown that includes the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and Securities and Exchange Board of India (Sebi) [1][13]. - Allegations suggest that between 2010 and 2012, Reliance Group companies borrowed significant amounts from Indian banks, with claims that approximately Rs 13,600 crore was siphoned off through complex transactions [6][13]. - The ED has marked Reliance Communications' loan accounts as fraudulent due to suspicious fund flows, indicating serious concerns about the financial practices within the group [6][13]. Group 2: Financial Impact and Asset Freezing - The ED has frozen assets worth Rs 75 billion belonging to Reliance Group companies as part of a money-laundering investigation linked to loans from YES Bank [7][13]. - Reports indicate that Reliance Home Finance and Reliance Commercial Finance received over Rs 100 billion in public funds through shell entities, raising further questions about the group's financial integrity [7][13]. Group 3: Company Responses and Market Reactions - In response to the investigations, the Reliance Group stated that the ED's actions have "no material impact" on the operations or future prospects of Reliance Infrastructure or Reliance Power, emphasizing their debt-free status [8][9][13]. - Despite the group's reassurances, shares of Reliance Infrastructure and Reliance Power fell significantly, with Reliance Infrastructure dropping 5% to a 52-week low [2][13]. - The group has filed a complaint with Sebi regarding alleged market manipulation and price hammering, indicating ongoing concerns about investor sentiment and market stability [9][13]. Group 4: Company Financials - As of March 31, 2025, Reliance Infrastructure reported assets worth Rs 65,840 crore and a net worth of Rs 14,287 crore, while Reliance Power had assets of Rs 41,282 crore and a net worth of Rs 16,337 crore, highlighting their significant retail shareholder bases [10][13].