Anil Ambani Reliance Group has seen its major firms being auctioned in bankruptcy proceedings and drowning in debt in recent years, but the group has made announcements last week that investors are considering as signs of change. The group announced in three days from September 18 to September 20 that it is implementing long-term fund raising plans. This can strengthen the financial position of the group. The board of Reliance Infrastructure approved raising funds of up to Rs 6,000 crore through preferential issue and QIP. On the other hand, the board of Reliance Power is meeting on September 23 to consider and approve raising funds through various methods.
surprised investors
The speed with which Anil Ambani has taken steps to repay the debt of his companies, as well as announced and implemented plans to raise funds for the future expansion of his companies, has surprised investors. Shares of both firms surged in the stock markets. Investors said that the announcement of the promoter group investing Rs 1,100 crore in Anil Ambani’s flagship company Reliance Infrastructure has further increased their confidence in the group’s revival plans. They believe that Anil Ambani’s dual strategy of debt reduction and raising fresh capital has laid the ground for the long-term transformation of the Reliance Group.
The market capitalisation of Reliance Infrastructure rose nearly 50 per cent from Rs 8,500 crore to Rs 12,500 crore by the end of the week. Similarly, the market capitalisation of Reliance Power rose over 25 per cent from Rs 11,500 crore to Rs 14,600 crore.
Stocks of 2 companies made it rain money
If we look at the last five years’ return of Reliance Power, the stock price of this company has increased from Rs 2.90 to Rs 36.34 today. In this way, it has given a bumper return of 1,153.10% to investors in the last five years. On the other hand, the share price of Reliance Infrastructure has increased from Rs 36.60 to Rs 316 in the last 5 years. In this way, this stock has given a bumper return of 763.39% in five years.
