Are the Days of Anil Ambani Back? Huge Jump in Group Shares
Anil Ambani, who was once the third richest person in the country, is still in huge debt. But in the last few months, the shares of his companies have gone up significantly. Shares of Anil Ambani-led Anil Dhirubhai Ambani Group (ADAG) have outperformed the market so far this financial year. Shares of Reliance Infrastructure Limited, Reliance Capital and Reliance Power have given good returns to investors.
RInfra’s Stock has Increased 3 Times in Three Months
Reliance Infra shares have tripled in value in the last three months. The company’s stock stood at Rs 32.95 on March 19 and reached Rs 105.75 on June 18. On Friday, the stock of Reliance Infra had reached Rs 105.90 during trading, which is its highest level in two years. It closed at Rs 105.75, up 4.81 percent. This is its highest level since May 30, 2019. It has crossed the Rs 100 level after a gap of two years. In the last one month, it has gained 105 fees while the BSE Sensex has lost 1 percent during this period. It has gained 221 percent in the last two months while the benchmark index has gained 9 percent during this period. The stock of Reliance Infra had hit a low of 8.65 percent in March 2020 while it was at a record high of Rs 2,632 in January 2008.
Shares of Other Companies Also Rose Significantly
According to data from ACE Equity, the shares of Reliance Power have gained 192 percent in the financial year 2021-22. Similarly, the shares of Reliance Communications, Reliance Capital, Reliance Home Finance and Reliance Naval and Engineering have gained a lot in this financial year.
Why Did the Interest of Investors Suddenly Rise?
Analysts say that this sudden investor interest in the shares of ADAG has its own reason. They are expecting the company to be more proactive in getting its business back on track and showing aggressiveness in reducing debt. Several companies of Anil Ambani are going to vote under the NCLT resolution and financial decisions are going to be taken in the next few weeks. Early trends suggest that banks will recover better than expected. Therefore, once again the interest of investors in the shares of ADAG has awakened.
How Much is The Loan
Several companies of ADAG, including Reliance Communications and Reliance Naval & Engineering, failed to repay the loan, after which the banks dragged them to bankruptcy court. Reliance Communications said in December that it has a debt of Rs 26,000 crore from Indian banks and financial institutions. Presently the company is going through insolvency proceedings. Indian banks, vendors and other creditors have claimed dues of Rs 86,000 crore on the company. Among Anil’s big companies, Reliance Capital had a debt of Rs 20,380 crore and Reliance Home Finance Rs 13 thousand crores as of December 2020. Anil Ambani had a debt of $305 million as of February 2020 while his assets were only $82 million.
Was Once the Country’s Third Biggest Rich
According to the Forbes India report published in 2007, Anil Ambani’s net worth was $ 45 billion and at that time he was the third richest person in the country. At the same time, the net worth of his elder brother Mukesh Ambani was $ 49 billion. Today Anil Ambani’s net worth is zero, while according to the Bloomberg Billionaires Index, Mukesh Ambani is the first in Asia and the 12th largest rich person in the world with a net worth of $ 84.6 billion.