ADAG Stocks Rise as SBI’s Fraud Tag on RCom Loan Seen as Having No Impact

Shares of Anil Dhirubhai Ambani Group (ADAG) firms Reliance Infrastructure and Reliance Power rallied up to 5% on Friday after the companies clarified that the State Bank of India’s (SBI) move to classify Reliance Communications (RCom) loan account as fraudulent is unlikely to affect them.

On the NSE, Reliance Power rose 3.7% to close at ₹66.90, while Reliance Infrastructure jumped 4.65% to ₹385.10.

The gains came after SBI’s action against the bankrupt RCom, which it accused of diverting funds dating back to 2016. SBI plans to report Anil Ambani, who served as a director at RCom, to the Reserve Bank of India (RBI) under banking norms. Once a loan is tagged as fraudulent in India, banks must alert investigative agencies, and the borrower is barred from accessing new funds for at least five years.

RCom, which is undergoing bankruptcy proceedings, disclosed a total debt of about ₹40,400 crore ($4.7 billion) as of March, according to Reuters. A company spokesperson said Ambani is handling the matter based on legal advice.

In response, Reliance Power and Reliance Infrastructure issued statements stressing that SBI’s move has “absolutely no impact” on their operations, financials, stakeholders, or governance. Both companies highlighted that they are independently listed entities, with no business or financial ties to RCom. They also clarified that Anil Ambani does not sit on the boards of either firm.

“Any measures taken concerning Reliance Communications do not affect the governance, management, or operations of Reliance Infrastructure or Reliance Power,” the companies said.

The clarification reassured investors, pushing up the stock prices despite the controversy surrounding RCom.