By- Pradeep Saran
Oct 2, 2024
In a remarkable turnaround, Reliance Infrastructure and Reliance Power, both part of the Anil Ambani Group, witnessed a massive 60% surge in their stock prices during September 2024. This impressive rally has garnered significant attention in the financial markets, as these companies overcame past hurdles to hit multi-year highs.
Reliance Infrastructure’s Highest Levels Since 2018
Reliance Infrastructure saw its stock soar by 60% in September, closing at ₹336.20 per share—the highest level since December 2018. This resurgence comes as the company focuses on restructuring its debt and expanding into high-growth sectors.
Key to this recovery was a ₹780 crore victory in an arbitration case against Damodar Valley Corporation, boosting investor confidence. The company has also drastically reduced its debt from ₹3,831 crore to just ₹475 crore and has cleared all major outstanding dues, including payments to Life Insurance Corporation of India (LIC) and ICICI Bank.
In another major move, Reliance Infrastructure resolved disputes with Adani Electricity Mumbai Limited and Adani Energy Solutions Limited, resulting in the withdrawal of arbitration claims. The company now looks forward to raising ₹6,014 crore through the sale of shares and convertible warrants, signaling future growth.
Reliance Power: Debt-Free Status Drives Momentum
Similarly, Reliance Power, a subsidiary of Reliance Infrastructure, surged 60% in September, closing at ₹48.6 per share, a level not seen since January 2018. The company achieved a key milestone by becoming debt-free from banks and financial institutions, significantly boosting investor sentiment.
The debt clearance came after Reliance Power settled all obligations related to Vidarbha Industries Power Limited (VIPL), lifting the company from corporate guarantees and associated claims totaling ₹3,872.04 crore. As a result, the stock has experienced substantial buying interest, particularly in mid-September.
Looking ahead, the company’s board will meet on October 3, 2024, to discuss raising long-term capital from domestic and international markets. This funding is expected to fuel Reliance Power’s expansion into the renewable energy sector, signaling a new chapter of growth.
Conclusion: A Promising Outlook for Anil Ambani Group Stocks
The strong recovery of Reliance Infrastructure and Reliance Power signals a positive shift in the companies’ fortunes. Their focus on reducing debt, resolving disputes, and exploring new growth avenues has reignited investor confidence, making these stocks ones to watch in the coming months.
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