Indian business tycoon Anil Ambani is fast approaching the end of his debt-laden days. His companies are on a rapid path to becoming debt-free, with significant milestones achieved in the past months. Following the complete debt clearance of Reliance Power, another company in the Ambani portfolio, Rosa Power, has made an impressive move towards debt-free status, repaying a substantial ₹850 crore loan ahead of schedule.
Reliance Power’s Debt-Free Transformation
Reliance Power’s subsidiary, Rosa Power, has made headlines with its recent move to repay a ₹850 crore loan to Singapore-based lender Verde Partners, ahead of schedule. This significant step brings Rosa Power closer to being debt-free, a goal that Reliance Power itself achieved earlier this month.
According to Business Standard, Rosa Power, which operates a 1,200 MW coal-based thermal power plant in Roza village near Shahjahanpur, Uttar Pradesh, is expected to settle the remaining debt in the next quarter. The company aims to be debt-free by the end of the current financial year, marking a monumental shift for the business under Anil Ambani’s leadership.
| Company | Loan Repaid | Lender | Plant Capacity |
|---|---|---|---|
| Rosa Power | ₹850 crore | Verde Partners | 1,200 MW |
| Reliance Power | Debt-Free (Earlier) | – | – |
Financial Boost from Reliance Power’s Board Approval
In addition to Rosa Power’s accelerated loan repayment, Reliance Power continues to strengthen its financial position. The company’s board has approved a preferential issue of funds, expected to bring in over ₹600 crore from Reliance Infrastructure, the parent company’s promoter. Moreover, Authum Investment and Infrastructure Limited and Sanatan Financial Advisory Services are expected to invest an additional ₹900 crore.
This financial influx is poised to enhance Reliance Power’s net worth, which is projected to rise from ₹11,155 crore to over ₹12,680 crore. The company’s increased financial muscle will allow it to pursue growth opportunities, especially in emerging areas like the renewable energy sector.
| Net Worth Growth | Current (₹) | Expected (₹) |
|---|---|---|
| Reliance Power | 11,155 crore | 12,680 crore |
Rosa Power’s Strategic Future: Strengthening Balance Sheet and Eyeing Renewable Energy
With Rosa Power now on track to reduce its debt and strengthen its balance sheet, the company is setting its sights on future growth areas. One key area of interest is the renewable energy sector, which has become a priority for many energy companies globally as the demand for cleaner energy increases.
By strengthening its financial position, Rosa Power is not only ensuring short-term stability but also positioning itself for long-term growth. With the backing of its parent company and strategic moves toward new energy sectors, Rosa Power’s future looks promising.
Reliance Power Stock Performance: Shares Surge
As Reliance Power continues to solidify its financial standing, the company’s stock performance has reflected positive investor sentiment. Reliance Power shares have surged by 30% in just six days, with shares closing in the upper circuit for the sixth consecutive day on Wednesday.
The stock, which closed at ₹40.06 on Tuesday, opened at ₹42.06 on Wednesday, marking a 5% rise. As a result, the market capitalization of Reliance Power has increased to ₹16,895.38 crore.
| Stock Price (BSE) | Previous Close (₹) | Wednesday Opening (₹) | Percentage Increase |
|---|---|---|---|
| Reliance Power | 40.06 | 42.06 | 5% |
Gautam Adani’s Interest in Reliance Power
As Reliance Power continues to improve its financial standing, it has attracted the interest of some of India’s biggest industrialists. Gautam Adani, who has been steadily expanding his portfolio in the energy sector, is reportedly eyeing one of Reliance Power’s plants, which supplies power to Mumbai. Adani’s potential interest reflects the value and strategic importance of Reliance Power’s assets in India’s growing energy market.
Conclusion: Anil Ambani’s Path to Financial Recovery
Anil Ambani’s journey to transform his debt-ridden companies is showing significant progress. With Reliance Power now debt-free and Rosa Power rapidly following suit, the once-struggling business empire is regaining its footing. The financial strategies put in place, including preferential issues and strategic repayments, are paving the way for future growth, especially in the renewable energy sector.
Reliance Power’s stock surge and Gautam Adani’s interest in its assets further underscore the company’s growing market confidence. For investors, this marks a pivotal moment in Anil Ambani’s business resurgence, with the potential for further growth and expansion on the horizon.
