Market capitalisation of Anil Ambani-led Reliance Group has zoomed over 1,000 per cent in less than 3 months. Market cap of the group rose to Rs 7,866 crore on June 18, 2021 from Rs 733 crore in March. In May, market cap of the firm jumped to Rs 3,890 crore in May 2021.
Market cap of the group companies, Reliance Infrastructure, Reliance Power, and Reliance Capital has risen over 100% in the last 20 trading days.
Market cap of Reliance Power stood at Rs 4,446 crore, Reliance Infrastructure at Rs 2,767 crore, and Reliance Capital at Rs 653 crore.
Firms of the Reliance Group such as Reliance Infrastructure, Reliance Power and Reliance Capital have nearly 50 lakh retail investors who have gained from this value creation.
The group has around 33 lakh retail shareholders in Reliance Power, 9 lakh in Reliance Infrastructure and 8 lakh in Reliance Capital in India. Retail investors have benefited by buying leftover stake from FIIs/ MFs and lenders who had invoked pledged shares over the last few years.
Reliance Group companies have seen their stocks rising due to various developments in the last 3 weeks. Reliance Infrastructure announced raising of Rs 550 cr from the promoter group and VSFI Holdings Pvt Ltd - an affiliate of Varde Investment Partners, LLP.
In another development, Reliance Power announced the issue of preferential equity shares and warrants to its promoter company, Reliance Infrastructure, amounting to Rs 1,325 crore, in order to convert debt into equity.
Another firm of Reliance Capital Group company, Reliance Home Finance is also in the final stages of its asset monetisation, as Authum Investment and Infrastructure, with a bid value of Rs 2,887 cr has emerged as the successful bidder for its assets. This will reduce Reliance Capital's debt by over Rs 11,000 crore, giving a big boost to the company and its investors.
The group's debt reduction got a boost recently when Axis Bank and YES Bank decided to remove the red flag classification of the Reliance Capital account, paving the way for successful monetisation of Reliance Capital assets.
Reliance Capital has received over 70 bids for its multiple assets, that include its general insurance, health insurance, life insurance, and securities business, apart from its private equity investment in companies like Paytm E-commerce and Nafta Innovations.