Anil Ambani‘s fortunes have recently taken a positive turn, marked by notable developments across his three key companies: Reliance Power, Reliance Infrastructure, and Reliance Communications. Over the past week, these companies have experienced significant progress, reflecting a potential revival in Ambani’s business landscape.
Reliance Power has received a substantial order that has contributed to a boost in its share prices. In parallel, Reliance Infrastructure is rapidly moving towards achieving a debt-free status. Additionally, Reliance Communications has received favorable rulings from the National Company Law Appellate Tribunal (NCLAT), enhancing its operational outlook.
From September 18 to 20, the group announced a substantial reduction in its debt levels, moving towards nearly zero debt, while implementing plans for long-term fundraising.
The announcement of an investment of ₹1,100 crore by the promoter group into Reliance Infrastructure has significantly bolstered investor confidence in the company’s revival and long-term growth strategy. As a result, Reliance Infrastructure’s market capitalisation surged by nearly 50%, climbing from ₹8,500 crore to ₹12,500 crore.
Reliance Power also saw a positive impact, with its market capitalisation increasing over 25%, moving from ₹11,500 crore to ₹14,600 crore. These gains reflect a renewed optimism among investors regarding the financial health of Ambani’s companies.
Reliance Infrastructure announced a substantial reduction in its standalone external debt, decreasing it from ₹3,831 crore to just ₹475 crore. This significant achievement was made possible by clearing outstanding dues to key lenders, including the Life Insurance Corporation of India (LIC), Edelweiss ARC, ICICI Bank, and Union Bank, as stated in the company’s filings. This move not only signals a strong financial recovery but also enhances Reliance Infrastructure’s flexibility to pursue new opportunities.
The board of Reliance Infrastructure has approved a fundraising initiative of up to ₹6,000 crore through a preferential issue and Qualified Institutional Placement (QIP). On September 23, Reliance Power’s board is scheduled to meet to consider and approve fundraising through multiple routes.
Moreover, Reliance Infrastructure’s board has approved a preferential issue to raise ₹3,014 crore, thereby increasing the stake of Risee Infinity Pvt Ltd, a promoter group entity, alongside other investors such as Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd. Additionally, the board is seeking shareholder authorisation to raise another ₹3,000 crore via QIP. These fundraising efforts are designed to strengthen the balance sheet and invest in future growth opportunities.
With these recent fund infusions, Reliance Infrastructure’s net worth is projected to rise from over ₹9,000 crore to more than ₹12,000 crore, according to company filings. As of February 2023, reports indicated that Anil Ambani’s assets were estimated to be around ₹20,000 crore.