Anil Ambani is experiencing a stunning resurgence, with his companies—Reliance Power, Reliance Infrastructure, and Reliance Communications—leading the charge. After grappling with bankruptcy and significant challenges, recent developments have reignited investor confidence in his ventures. The group has announced a near-zero debt status and is embarking on long-term fundraising initiatives.
In New Delhi, it seems that Anil Ambani’s tumultuous times may be behind him, thanks to Reliance Power, Reliance Infrastructure, and Reliance Communications. Once the sixth richest person globally with a net worth of $42 billion in 2008, Ambani faced a steep decline, culminating in Reliance Capital filing for bankruptcy in 2021 over defaulted bonds worth ₹24,000 crore. Many doubted his ability to recover, but his determination and resilience are paving the way for a remarkable comeback.
September has proven to be a fruitful month for the Reliance Group chairman. Within just three days, from the 18th to the 21st, the company announced significant achievements, including a reduction of its debt and the implementation of long-term funding strategies. Reliance Power secured a substantial order that boosted its share prices, while Reliance Infrastructure is on track to become debt-free. Additionally, Reliance Communications received positive news from the National Company Law Appellate Tribunal (NCLAT).
In a significant development, the NCLAT dismissed a petition from the State Tax Department that sought to claim dues from Reliance Communications based on an assessment made post-insolvency resolution, according to PTI.
The Rise of Reliance Infrastructure & Reliance Power
Recent announcements of a ₹1,100 crore investment in Reliance Infrastructure have significantly uplifted investor confidence regarding the group’s revival and long-term prospects. By the end of the week, Reliance Infrastructure’s market capitalization surged nearly 50%, rising from ₹8,500 crore to ₹12,500 crore. Similarly, Reliance Power’s market capitalization climbed over 25%, increasing from ₹11,500 crore to ₹14,600 crore.
Reliance Infrastructure’s Ambitious Fundraising Plans
The board of Reliance Infrastructure has approved a plan to raise up to ₹6,000 crore through a preferential issue and Qualified Institutional Placement (QIP). Meanwhile, Reliance Power’s board has authorized the issuance of up to 46.20 crore equity shares/warrants worth ₹1,525 crore via a preferential allotment.
Strategic Stake Increase
In a noteworthy move, Reliance Infrastructure’s board has approved a preferential issue aimed at raising ₹3,014 crore, which will enhance the stake of Risee Infinity Pvt Ltd, a promoter group entity, alongside investments from firms like Florintree Innovation LLP and Fortune Financial & Equities Services Pvt Ltd.
Strengthening the Balance Sheet
Additionally, the board has sought shareholder approval to raise another ₹3,000 crore through QIP. This capital infusion will bolster the company’s balance sheet and facilitate investments in new growth opportunities.
Anil Ambani’s Rising Net Worth
As a result of these financial maneuvers, Reliance Infrastructure’s net worth is projected to increase from over ₹9,000 crore to more than ₹12,000 crore, according to recent filings. As reported by the Times of India in February 2023, Anil Ambani’s total assets were estimated at around ₹20,000 crore.
