Power Play: Reliance’s Bold Strategy for Growth

Anil Ambani's Reliance Group is securing Rs 17,600 crore through various equity and bond strategies, including investments from Varde Partners and institutional placements. This fundraising boosts the net worth and supports future expansion plans, signaling strong financial growth prospects for Reliance Infrastructure Ltd and Reliance Power Ltd.

Anil Ambani's Reliance Group is setting ambitious growth plans in motion with a Rs 17,600 crore fundraising initiative, leveraging its zero-debt status for strategic expansion. The group companies, Reliance Infrastructure Ltd and Reliance Power Ltd, aim to deploy these funds to drive future growth.

Recent financial activities include raising Rs 4,500 crore through preferential equity shares and obtaining Rs 7,100 crore from global investment fund Varde Partners via equity-linked foreign currency convertible bonds (FCCBs), which are characterized by a 10-year maturity and a 5 percent interest rate.

Additionally, a plan to generate Rs 6,000 crore through qualified institutional placements is in motion, with shareholder approvals anticipated by the end of the month. This comprehensive financial strategy is expected to enhance the net worth of the companies to Rs 25,000 crore, equipping them for robust expansion endeavors.

(With inputs from agencies.)