After Turbulent Times, Anil Ambani On The Rise Again

Anil Ambani, once making headlines for the wrong reasons, appears to be on a path to recovery, primarily due to the recent turnaround of Reliance Power. Known for facing significant challenges over the years, including the near-collapse of Reliance Capital and regulatory issues with SEBI, Ambani's fortunes seemed to be on a downward trajectory. However, the revival of Reliance Power has brought a positive shift in his career.

Reliance Power, under Ambani's leadership, has experienced a remarkable transformation. The company, once struggling, is now valued at Rs 16,000 crore, with its shares rising by 158 per cent over the past year—from Rs 15.53 to over Rs 40. This impressive growth can largely be attributed to the company's strategic decision to become debt-free, coupled with substantial investments that have instilled confidence in the market.

Anil Ambani, who was once the sixth richest person globally with a net worth of USD 42 billion in 2008, faced a drastic fall due to overwhelming debts. His businesses, including Reliance Communications, encountered severe financial troubles, leading to insolvency and bankruptcy proceedings. In 2020, he even declared himself bankrupt in a British court. The immense pressure from creditors and a mounting debt burden made it difficult for him to manage his finances.

However, the transformation of Reliance Power began in December 2023 when the company started repaying its significant debts. By March 2024, it had repaid Rs 1,023 crore, followed by an additional Rs 800 crore in August. Most recently, the company settled a massive Rs 3,872 crore loan with banks, achieving a debt-free status.

This new financial position has given rise to optimism in the stock market. In the past nine trading days, Reliance Power’s shares have surged by over 35 per cent, with the stock hitting a 5 per cent upper circuit on four consecutive days. The market capitalisation of the company, which was at Rs 6,238 crore on October 26, 2023, has now increased by Rs 9,853 crore, reaching Rs 16,091 crore as of September 2024.

After years of financial struggles, including his 2020 bankruptcy declaration, Anil Ambani’s fortunes appear to be taking a positive turn, aided by the success of his sons in revitalising the family business.

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