20 March 2024 – In a significant turn of events, Anil Ambani-led Reliance Power has made strides in resolving its debts with three major banks – ICICI Bank, Axis Bank, and DBS Bank. Sources close to the matter also revealed that Reliance Infrastructure, the parent company, is actively working towards settling outstanding payments amounting to Rs 2,100 crore owed to JC Flowers Asset Reconstruction Company.
Anil Ambani, once considered the black sheep of the Ambani family amidst his brother Mukesh Ambani’s continued success, seems to be staging a remarkable comeback. After facing financial challenges and filing for bankruptcy in a UK court in February 2020, Ambani’s resurgence is evident with Reliance Power shares witnessing a staggering surge of over 120% in the past year.
The positive momentum extends beyond Reliance Power, with Reliance Retail also announcing the successful settlement of debts with ICICI Bank. Under Ambani’s leadership, Reliance Power has now cleared debts owed to major banks, signaling a promising path forward. Ambani’s focus now shifts towards settling the remaining debt of Rs 2,100 crore with JC Flowers Asset Reconstruction Company.
An interesting facet of this turnaround is the role of Yes Bank, the original lender to Anil Ambani’s enterprises. Yes Bank transferred its distressed loan portfolio of Rs 48,000 crore to JC Flowers ARC, which included loans to Reliance Infrastructure and Reliance Power. With ambitious plans to achieve a debt-free status by the end of the fiscal year, Reliance Power, under Anil Ambani’s guidance, seems poised for a resurgence.
