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Reliance Infrastructure Soars In Market As Anil Ambani’s Strategy Spurs Investor Confidence

Reliance Infrastructure, under Anil Ambani's leadership, experiences a remarkable 12% surge in share value after unveiling new ventures and debt reduction plans.

Edited By : Swechchha | Updated: Jun 10, 2024 18:10 IST
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Anil Ambani
Anil Ambani

Amidst mounting debt, Anil Ambani has embarked on a path to revitalize his companies in the face of worsening financial conditions. While Anil Ambani’s companies continue to struggle under heavy debt burdens, he has simultaneously launched four new ventures. Promoter of Reliance Infrastructure, Anil Ambani, has initiated not one but four new companies. Reliance Velocity Limited, a subsidiary of Reliance Infrastructure, has kickstarted the establishment of Reliance EV Private Limited.

Reliance Infrastructure, promoted by Anil Ambani, is burdened with debt. To alleviate this burden, Reliance Infra has devised a new plan. Under this plan, Reliance Infrastructure is preparing to raise $350 million (approximately ₹3,000 crores) through Foreign Currency Convertible Bonds (FCCBs). This fund will be utilized not only to reduce existing debt but also to initiate new business ventures. Reliance Infra, engaged in road construction, metro rail, and power generation projects, is launching four new companies.

Reliance Infrastructure informed regulatory filing about its plans. Subsequently, Anil Ambani’s proposal to start four companies was also approved last week. Engaged in the manufacturing of roads, metro trains, and power production, Reliance Infra is now expanding its operations. Reliance Velocity Limited, a subsidiary of Reliance Infra, has established Reliance EV Private Limited as a new entity. According to information provided by the company to the stock market, the objective of the new subsidiary is to engage in manufacturing deals related to transportation or vehicle equipment, utilizing any form of fuel.

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Reliance Infrastructure, led by Anil Ambani, has announced the establishment of four new subsidiary companies: Reliance Jay Private Limited (RJPL), Reliance Unlimited Private Limited (RUPL), Reliance EV Private Limited (REVPL), and Reliance Rise Private Limited (RRPL). These new entities will be engaged in activities related to power production, information technology, basic infrastructure, and fuel transportation.

Anil Ambani’s company has access to non-convertible debenture term loans amounting to ₹2,253 crores and ₹703 crores. While the company holds a term loan of ₹1,505 crores from Yes Bank, as per the credit rating report, it also owes IDBI Bank, Jammu and Kashmir Bank, and Axis Bank ₹600 crores, ₹82 crores, and ₹66 crores respectively. Ambani is actively engaged in efforts to revive his business, aiming to alleviate the burden of heavy debt on the company. The company has made a payment of ₹1,347 crores to JCFRCI and is similarly endeavoring to settle its remaining debts.

Following this news, there was a tremendous surge in Anil Ambani’s company’s shares. As the market opened, Reliance Infrastructure’s shares soared by up to 12 percent. While the shares closed at ₹168.20 on Friday, they opened at ₹175 on Monday. Within a short span, the share price climbed to ₹192.70. This surge amounted to over 12 percent in the share’s value. In terms of market capitalization, Reliance Infra stands at ₹7,340 crores.

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First published on: Jun 10, 2024 06:10 PM IST

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