Small-Cap Stock Under Rs 100: Shares of Reliance Infrastructure Ltd. (formerly Reliance Energy Ltd.) jumped 5% on Monday, Aug. 3 amid a positivie sentiment in the domestic stock market over positive global cues. Investors showed buying interest in the stock even after the Central Bureau of Investigation (CBI) registered an FIR (First Information Report) on Saturday against Reliance Capital's Chairman Anil Ambani, alleging that he, along with unknown public servants and other anonymous figures, had caused a wrongful loss of Rs 1,007 crore. It also further alleged an interest liability of Rs 808.67 crore.
The offences included criminal conspiracy, cheating, criminal breach of trust and criminal misconduct. The FIR was based on a written complaint from the Employees' Provident Fund Organisation (EPFO), which functions under the Ministry of Labour and Employment. Despite the CBI FIR, shares of the small-cap stock currently priced under Rs 100, climbed 5% in early trade on Monday. Reliance Infra and its top officials have been under the CBI's radar over misreporting of business irregularities.
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Reliance Infra share price intraday
On Monday, shares of the Anil Dhirubhai Ambani Group (ADAG) stock opened at Rs 63.04 against a previous close of Rs 60.04 and extended gains by upto 5% to hit intraday high. Shares of Reliance Infra have risen 5% in one week, but down 15% in one month, 60% on a year-to-date basis and 80% in the last one year. The Anil Ambani-led firm commands a market cap of Rs 2,576.01 crore. The Nifty 50 traded 182.55 points, or 0.75%, higher at 24,566.15 after rising 0.8% to 24,576.45 and the BSE Sensex gained 578.43 points, or 0.74%, to 78,673.07 after climbing as much as 800 points to 78,895.10.
CBI Files FIR against Reliance Infra
According to the agency, the complaint alleges that Reliance Capital Ltd. (RCL) issued secured non-convertible debentures (NCDs) in 2013 and 2014, in which the Employees' Provident Fund Organisation (EPFO) invested Rs 2,500 crore through four portfolio managers, including Reliance Capital Asset Management Ltd. The NCDs were scheduled to mature in 2023 and 2024.
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The complaint further alleges that the accused engaged in fraudulent transactions and diverted funds, leading to Reliance Capital's default on redeeming the NCDs. As a result, the EPFO allegedly suffered losses of Rs 1,816.22 crore. "Investigation has been taken up to identify the role of all persons involved, including public servants and private individuals, examine the alleged criminal conspiracy, and trace the end use of the invested funds," the press release from the CBI stated.
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