Anil Ambani group stocks rose on Monday morning after the company announced the establishment of Reliance Group Corporate Centre as a part of its VISION 2030: Growth Strategy and outlined plans for expansion into new growth areas.
Price Movement
In Monday’s trading session, Reliance Infrastructure Ltd’s shares soared 4 percent, reaching an intra-day high of Rs.269.70 per share, up from its previous close of Rs.258.80. Similarly, Reliance Power Ltd’s shares surged 0.2 percent to Rs.36.00 per share, from previous close of Rs.35.93, and are currently trading at Rs.34.60 per share.
What happened
Reliance Group has launched the “Reliance Group Corporate Centre” (RGCC) as part of its Vision 2030 growth strategy. The RGCC will provide strategic guidance to the Group’s companies, focusing on new opportunities and technological advancements. The core team includes seasoned leaders Mr. Sateesh Seth, Mr. Punit Garg, and Mr. K. Raja Gopal, with nearly 100 years of combined management experience.
Management Commentary
A Reliance Group spokesperson highlighted, “We are thrilled to introduce RGCC, a team of seasoned professionals with a broad spectrum of expertise. This strategic move aims to steer the Group’s future growth by tapping into the vast experience of these leaders, which will help navigate industry challenges and capitalize on new opportunities, drive innovation, and deliver exceptional value to our customers and stakeholders. We believe RGCC will be instrumental in shaping the next phase of our Group’s success.”
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Expansion Plans
Reliance Infrastructure Ltd. and Reliance Power Ltd., major entities within the Reliance Group, have recently eliminated their bank debt and announced plans for expansion into new sectors.
Reliance Power has secured 1,270 MW of renewable energy projects in Bhutan, while Reliance Infrastructure, through Reliance Defence Ltd., is building a facility in Ratnagiri, Maharashtra for manufacturing small arms, ammunition, and explosives.
To support these initiatives, the companies are raising Rs 17,600 crore, with Rs 4,500 crore through preferential equity issues, Rs 7,100 crore from Varde Partners via equity-linked long-term FCCBs, and Rs 6,000 crore through Qualified Institutional Placement (QIP), with each company targeting Rs 3,000 crore.
Financials
According to Reliance Power’s latest financial update, revenue decreased 13 percent to Rs.1,760 crore, while the net profit increased substantially to Rs.1,760 crore compared to a net loss of Rs.98 crore in the same period.
For Q2 FY25, Reliance Infrastructure Ltd reported a 46 percent revenue rise to Rs.7,258 crore. The company’s net profit increased exceptionally to Rs.4,195 crore, during the same quarter a year ago.
Company Profile
Reliance Infrastructure Ltd is a key player in India’s infrastructure sector, with a strong focus on power generation, transmission, and urban infrastructure development, and a significant presence in Mumbai and Delhi. Reliance Power, also part of the Reliance Group, specialises in the development and operation of power projects across various fuel types and locations.
Written by – Siddesh S Raskar
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