On September 18, 2024, stocks of Anil Ambani’s listed companies, Reliance Power and Reliance Infrastructure, experienced a significant rise. Reliance Power saw its stock hit the upper circuit limit after a 5% increase, while Reliance Infrastructure’s stock surged by about 16%, reaching ₹272.
Key Developments
The boost in Reliance Power’s stock came after the company announced it had become debt-free. Reliance Power revealed in a regulatory filing that it had repaid ₹3,872.04 crore in debt associated with Vidarbha Industries Power Limited. Additionally, the company resolved all disputes with CFM Asset Reconstruction Private Limited. In exchange for a corporate guarantee, Reliance Power had pledged 100% of Vidarbha Industries Power Limited’s shares to CFM.
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Following this news, Reliance Power’s stock opened at ₹32.97, marking a 5% rise, and quickly hit the upper circuit limit. Reliance Power, a major player in the power generation sector, produces 5,300 megawatts of electricity from coal, gas, hydro, and renewable energy sources.
Reliance Infrastructure’s Improvement
Reliance Infrastructure also saw a significant rise in its stock price. The company announced that its total outstanding debt had reduced from ₹3,831 crore to ₹475 crore. Reliance Infrastructure cleared debts with Invent ARC, LIC, Edelweiss Asset Reconstruction Company, ICICI Bank, Union Bank, and other lenders. As a result, the company’s net worth increased to ₹9,041 crore.
After the reduction in debt, Reliance Infrastructure’s stock soared by approximately 17%, reaching a high of ₹275.50 during trading. The stock had previously closed at ₹235.61.
Summary
Both companies have seen a significant positive impact on their stock prices due to major debt repayments and improved financial health.
