Anil Ambani’s Reliance Group ready for a grand comeback, plans to raise Rs 17,600 crore
Asia’s richest man Mukesh Ambani’s younger brother and businessman Anil Ambani’s star may shine again. Anil Ambani’s Reliance Group is currently focused on its two companies, Reliance Infrastructure Limited and Reliance Power Limited. Both these companies of his Reliance Group are ready to raise Rs 17,600 crore and execute their growth strategies with zero debt position.
Both the companies have announced raising Rs 4,500 crore in the last two weeks through preferential issuance of equity shares and Rs 7,100 crore through equity-linked long-term FCCB from renowned global investment company Varde Partners. Their maturity period is 10 years and the interest rate is five percent. An additional Rs 6,000 crore will be raised through qualified institutional placement (QIP). In this, Reliance Power and Reliance Infrastructure aim to raise Rs 3,000-3,000 crore.
Shareholder approval for raising this fund is expected by the end of the month. Reliance Group’s strategy of raising capital through equity or equity-linked long-term bonds will provide the group companies with the necessary growth capital for their expansion plans. After this financing, the net worth of both the companies will be around Rs 25,000 crore.
Reliance Infra and RPower rise
The stocks of Reliance Infrastructure and Reliance Power are seeing a tremendous rise. The share of Reliance Infrastructure has climbed about 40 percent in the last one. It is currently at the level of Rs 300 per share. On the other hand, if we talk about Reliance Power, it had an upper circuit for 11 consecutive trading sessions. It has given a return of about 70 percent in the last one month. The price of one share of Reliance Power is Rs 50.95.
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