In September, stocks of Reliance Infrastructure and Reliance Power, part of the Anil Ambani Group, made a huge recovery, each jumping by 60%. This strong comeback was fueled by positive changes in the companies, including a focus on cutting debt and improving how they run their operations.
Reliance Infrastructure Reaches Highest Point Since 2018
Reliance Infrastructure’s stock shot up 60% in September, closing at ₹336.20 per share, the highest it has been since December 2018. The company recently won a ₹780 crore arbitration case against Damodar Valley Corporation, boosting investor confidence.
Additionally, Reliance Infrastructure has been reducing its debt significantly, cutting it down from ₹3,831 crore to ₹475 crore. It recently paid off dues to Edelweiss Asset Reconstruction Company and settled debts with big lenders like Life Insurance Corporation of India (LIC) and ICICI Bank. It also reached a mutual settlement with Adani Electricity Mumbai Limited, resolving past disputes.
Reliance Infrastructure is involved in power distribution in Delhi, engineering projects, and manages infrastructure for metro services, toll roads, and airports. The company plans to raise ₹6,014 crore by selling shares and convertible warrants.
Reliance Power: Debt-Free Status Drives Stock Surge
Reliance Power, a subsidiary of Reliance Infrastructure, also surged 60% in September, reaching ₹48.6 per share, the highest level since January 2018. The stock rallied after the company announced it was now debt-free from banks and financial institutions. This was achieved after settling a corporate guarantee for Vidarbha Industries Power Limited, which had ₹3,872 crore in outstanding debt.
On October 3, 2024, the company’s board will meet to discuss raising funds for expansion, especially in renewable energy. Meanwhile, in August, SEBI banned Anil Ambani, the chairman of Reliance Group, from the securities market for five years due to allegations of fund mismanagement.
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