Ambani Group Stocks Surge in September

Ambani Group Stocks: In September, stocks of the Anil Ambani Group saw a remarkable increase, with Reliance Infrastructure and Reliance Power both rising by 60%. This boost followed positive news that helped restore investor confidence, bouncing back from previous lows.

Reliance Infrastructure Highlights

Reliance Infrastructure’s shares reached Rs.336.20, their highest level since December 2018. A significant factor in this increase was the company's recent win in an arbitration case against the Damodar Valley Corporation, worth Rs.780 crore. The company has been focusing on reducing its debt, which has dropped dramatically from Rs.3,831 crore to Rs.475 crore. They recently settled a Rs.235 crore obligation with Edelweiss Asset Reconstruction Company and cleared outstanding debts to major lenders like LIC and ICICI Bank. Additionally, a settlement with Adani Electricity and Adani Energy Solutions resolved ongoing disputes as of September 17, 2024.

Company Operations

Reliance Infrastructure is involved in power distribution in Delhi, as well as providing engineering, procurement, and construction (EPC) services. The company is also expanding into high-growth sectors and maintains infrastructure for metro services, toll roads, and airports.

Future Plans

The company plans to raise up to Rs. 6,014 crore through the sale of shares and convertible warrants to support its expansion efforts.

Reliance Power’s Strong Rally

Reliance Power, a subsidiary of Reliance Infrastructure, also saw its shares jump by 60%, reaching Rs.48.6—the highest since January 2018. This surge was driven by the announcement that Reliance Power has become debt-free from banks and financial institutions. This was achieved after settling all obligations related to Vidarbha Industries Power Limited (VIPL), which had outstanding debts of Rs.3,872.04 crore.

Board Meeting Announcement

The board of Reliance Power will meet on October 3, 2024, to discuss raising long-term funds for expansion, especially in the renewable energy sector.

Regulatory Challenges

In August, Anil Ambani faced regulatory challenges when SEBI banned him from the securities market for five years and imposed a fine of approximately $3 million due to allegations of fund diversion.

Also read:India’s Manufacturing Activity Hits Eight-Month Low in September

These recent developments indicate a significant turnaround for the Anil Ambani Group, with both Reliance Infrastructure and Reliance Power focusing on strengthening their financial positions and exploring new growth opportunities.