How Anil Ambani went from being the 6th richest man to bankrupt: Now he's back! The story of Reliance Power
Explore Anil Ambani journey from the 6 richest people to bankruptcy and the remarkable revival of Reliance Power, achieving a ₹16k crore MC after becoming debt-free
By Raj Chouhan Rb• Sep 26, 2024
Anil Ambani's power company Reliance Power's stock has been rocketing since the day the company announced that it has become a debt-free company. The company has paid off the Rs 850 crore debt of subsidiary Roza Power and Singapore-based Varde Partners, after this news it is believed that Reliance Power's stock may rise even more in the coming days.
Anil Ambani, who was the world's sixth richest industrialist in 2008 with a net worth of $42 billion, saw his wealth decline rapidly due to heavy debt. His companies, including Reliance Communications, came to the brink of bankruptcy. In 2020, he declared himself bankrupt in a British court. Heavy debt and pressure from creditors had put them in a severe financial crisis.
After becoming debt-free, Reliance Power shares rose sharply and the shares have gained 35% in the last 9 trading days. The shares touched the upper circuit of 5% for four consecutive days. This surge is not just a result of the recent rally but is part of a year-long revival process. In October 2023, the company's shares were at a 52-week low of Rs 15.53 and its market capitalization at that time was Rs 6,238 crore. Since then, the valuation of the company has increased by Rs 9,853 crore to Rs 16,091 crore in September 2024.
Anil Ambani's journey from the sixth richest person to bankruptcy
Anil Ambani, who was the world's sixth richest industrialist in 2008 with a net worth of $42 billion, saw his wealth decline rapidly due to heavy debt. His companies, including Reliance Communications, came to the brink of bankruptcy. In 2020, he declared himself bankrupt in a British court. Heavy debt and pressure from creditors had put them in a severe financial crisis.
How did Reliance Power rise from bankruptcy?
Reliance Power's revival began in December 2023, when the company started repaying its debt. By March 2024, the company repaid Rs 1,023 crore of debt, then Rs 800 crore in August and recently settled a loan of Rs 3,872 crore, making the company debt-free.How did the company reach a market cap of ₹16,000 crore?
After becoming debt-free, Reliance Power shares rose sharply and the shares have gained 35% in the last 9 trading days. The shares touched the upper circuit of 5% for four consecutive days. This surge is not just a result of the recent rally but is part of a year-long revival process. In October 2023, the company's shares were at a 52-week low of Rs 15.53 and its market capitalization at that time was Rs 6,238 crore. Since then, the valuation of the company has increased by Rs 9,853 crore to Rs 16,091 crore in September 2024.
Why is the stock continuing to rise
Reliance Power had a board meeting on 23 September 2024 this month. A proposal to raise funds was presented in this meeting. The company is planning to raise funds from the global market along with the domestic market. Let us tell you that recently the debt of two companies of Anil Ambani was reduced. After the reduction in debt, the shares of the company have risen. Along with Reliance Power, the stock of Reliance Infrastructure has also seen a rise.Related Post
Raksha Bandhan 2025 Date, Time & Significance, Shubh Muhurat & HistoryCelebrate Raksha Bandhan 2025 on Saturday, August 9 with joy and devotion. Know the Rakhi tying Shubh Muhurat, Purnima Tithi, worship method...
By Raj Chouhan Rb• Aug 01, 2025
Other
