Once hailed as the sixth richest man in the world with a net worth of $42 billion, Anil Ambani faced a stunning fall from grace as his companies crumbled under debt, culminating in the collapse of Reliance Capital in 2021. Most industry experts believed his journey had reached its final chapter. But in a twist that shocked even his harshest critics, Anil Ambani is back, and his three flagship companies—Reliance Power, Reliance Infrastructure, and Reliance Communications—are leading the charge.
In a remarkable turn of events, Anil Ambani’s companies have been shedding their financial burdens at an astonishing pace. Between September 18th and 21st, Reliance Group made several announcements that reignited investor confidence. Most notably, the group declared it had almost entirely cleared its massive debt, and plans for long-term fundraising are now in motion.
This transformation began when Reliance Power secured a significant contract, leading to a surge in its share price. Simultaneously, Reliance Infrastructure took strides toward becoming debt-free, and Reliance Communications received favourable rulings from the National Company Law Appellate Tribunal (NCLAT), offering the company new hope. The NCLAT ruling overruled a petition by the State Tax Department, which sought to claim dues from Reliance Communications post its insolvency resolution—a pivotal moment for Ambani's comeback.
Key to this revival has been Reliance Infrastructure's recent Rs 1,100 crore investment from its promoters, sending a clear signal to investors of the company's renewed growth potential. By the end of September’s third week, Reliance Infrastructure’s market capitalisation skyrocketed by nearly 50%, reaching Rs 12,500 crore, up from Rs 8,500 crore. Similarly, Reliance Power witnessed a 25% surge in market capitalisation, climbing from Rs 11,500 crore to Rs 14,600 crore.
Reliance Infrastructure is not just paying off debts; it’s planning for future growth. The company's board has approved fundraising efforts of up to Rs 6,000 crore via preferential issues and Qualified Institutional Placement (QIP). Reliance Power also announced plans to issue up to 46.2 crore equity shares/warrants worth Rs 1,525 crore, securing fresh capital for expansion.
The revival story doesn’t end here. Reliance Infrastructure’s strategic decisions include a Rs 3,014 crore preferential issue that will bolster the stake of promoter group entity Risee Infinity Pvt Ltd, along with contributions from key investors. The company also seeks approval to raise an additional Rs 3,000 crore through QIP to reinforce its balance sheet and fuel future investments.
Reliance Infrastructure alone is expected to increase its value from Rs 9,000 crore to over Rs 12,000 crore. As of February 2023, Anil Ambani's total assets were estimated to be around Rs 20,000 crore, marking a stunning comeback for a man many thought was down and out. His resilience and strategic vision have once again positioned him as a formidable force in India’s corporate world.
