Winning Bizness Desk

Mumbai. Reliance Infrastructure, led by Anil Ambani, has significantly reduced its debt, sparking a 20% surge in its shares. The company announced that it has repaid 87% of its standalone external debt, bringing the total down from Rs 3,831 crore to Rs 475 crore. This positive development saw the company's shares rise by over 7%, reaching Rs 254.40 per share during trading on the Bombay Stock Exchange (BSE). In a statement, Reliance Infrastructure highlighted its repayment strategy, particularly its settlement with one of its key lenders, Invent Assets Securitisation and Reconstruction Private Limited (Invent ARC). The company stated that all fund-based dues to Invent ARC have now been cleared, bringing the outstanding amount to zero.

Made full payments to several major financial institutions

Additionally, the company has made full payments to several major financial institutions, including the Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction Company, ICICI Bank, and Union Bank, among others. This large-scale debt repayment is seen as a significant achievement for Reliance Infrastructure, allowing the company to focus on growth without the burden of substantial liabilities. One of the key milestones in this process was a one-time settlement with LIC for non-convertible debenture (NCD) dues amounting to Rs 600 crore. The company also cleared Rs 235 crore in NCD-related payments to Edelweiss. These moves have substantially strengthened Reliance Infra's financial position, putting it on a more stable footing.

Reliance Power's stock uppish

Meanwhile, Reliance Power, another company under the Anil Ambani-led Reliance Group, also saw its stock touch the upper circuit of 5% on BSE, reaching Rs 31.32 per share. This surge follows the company's recent success in securing a 500 MW battery storage contract through an e-reverse auction organized by the Solar Energy Corporation of India. This new contract is expected to enhance Reliance Power’s presence in the renewable energy sector. The 52-week high of Reliance Power’s stock stands at Rs 38.07, and the recent developments have boosted investor confidence in both companies.

Move improves company’s balance sheet

The reduction of Reliance Infrastructure's debt is a significant win for the group, which has faced financial challenges in recent years. The move not only improves the company’s balance sheet but also positions it for future growth and investment opportunities. Both Reliance Infra and Reliance Power are expected to continue focusing on debt reduction and operational improvements as part of their broader strategy to strengthen their financial health and regain investor trust. The positive response from the stock market highlights growing optimism around the group's recovery efforts and its potential for future growth.