Anil Ambani's Reliance Group begins the journey of change, know what's next?

Reliance Group News: Anil Ambani-led Reliance Group has faced a financial crisis in recent years, with several of its major firms caught in bankruptcy proceedings and heavily indebted. However, announcements made by the group last week have raised hopes among investors and are being seen as a sign of a possible turnaround. Between September 18 and 20, the group announced several fund-raising plans, which are expected to improve the group's financial position.

The board of Reliance Infrastructure has approved a plan to raise funds up to Rs 6,000 crore through preferential issue and QIP (qualified institutional placement). Along with this, the board of Reliance Power has also held a meeting on September 23 to consider various ways of raising funds.

Surprised investors

Anil Ambani's efforts to raise funds have surprised investors. His strategy to reduce the debt load and raise new capital for future expansion has been viewed positively by the market. The shares of these firms surged in the stock market. The announcement of the promoter group investing Rs 1,100 crore in Reliance Infrastructure further boosted investor confidence.

Analysts believe that this dual strategy – debt reduction and raising fresh capital – can lay a strong foundation for the long-term revival of the Reliance Group. This new direction of the group has raised hopes among investors about the possibility of the company's revival.

Market capitalisation jump

Following these announcements, the market capitalisation of Reliance Infrastructure rose nearly 50 per cent by the end of the week, rising from Rs 8,500 crore to Rs 12,500 crore. Similarly, the market capitalisation of Reliance Power rose over 25 per cent from Rs 11,500 crore to Rs 14,600 crore. This surge shows that investors have increased confidence in the group's future plans.

Historical performance of stocks

Reliance Power's stock has given tremendous returns to investors in the last five years. Its stock price rose from Rs 2.90 to Rs 36.34 during this period, giving investors a bumper return of 1,153.10%. At the same time, the value of Reliance Infrastructure shares increased from Rs 36.60 to Rs 316 in the last five years, giving a huge return of 763.39%.

Conclusion

Anil Ambani's revival strategy of Reliance Group and efforts to get rid of debt have created new hopes among investors. The boom in the stock market and the good performance of the stocks of companies show that the group has moved in the right direction. If the group achieves its target of raising funds and reducing debt, it can prove beneficial for the future of the group in the long term.