Anil Ambani On A Comeback Trail

Happy days are here again for Anil Ambani. Some of his company’s stocks are northbound. For instance, Reliance Power and Reliance Infra stocks are in surging mode. Reason: Reliance Infra’s debt has been reduced by almost 87.6% to Rs 475 crore from earlier Rs 3,831 crore. Its share price shot up by 80.53% giving an impressive returns of nearly 50% in the last 12 months. Ditto, Reliance Power. Its share price is also on the rise after the company fully settled Rs 3,872.04 crore corporate guarantee outstanding debt obligation of Vidarbha Industries Power. With this kind of positive development Reliance Infra share price has jumped by 7% trading at Rs 252.15. Anil Ambani has also made a one-time settlement with Edelweiss ARC — its NCD debts have reduced from Rs 3,800 crore to around Rs 470 crore. It is also learnt that Anil Ambani has also fully repaid LIC, ICICI Bank and Union Bank. Market sources say Reliance Infra is likely to get Rs 1,100 crore equity infusion from its promoter Anil Ambani and Rs 1,910 crore from two Mumbai-based investment firms. There is also a strong rumour that Blackstone executive Mathew Cyriac through Florintree Innovation and equity investor Nilesh Shah may invest Rs 1200 crore via Fortuna Financial & Equity Services for a minority stake. It is understood that the Board has approved Rs 6,000 crore fundraising plan of which Rs 3,014 crore fund will be raised through allotment of share issue to institutionalized buyers.