Reliance Group’s ₹17,600 crore strategy provides capital for expansion plan

Anil Ambani’s Reliance Group has launched a ₹17,600 crore fundraising drive to support its aggressive expansion strategy, targeting core sectors like infrastructure and power. The strategy includes raising ₹4,500 crore through preferred equity shares, with contributions from group promoters and institutional investors, and raising ₹7,100 crore from Verde Partners through long-term foreign currency convertible bonds (FCCBs). These group bonds mature in 10 years at a fixed low interest rate of 5% for its developmental purposes and provide a cost-effective financial system.

In addition, Reliance Power and Reliance Infrastructure aim to raise an additional ₹6,000 crore through qualified institutional placement (QIP), with each company targeting ₹3,000 crore. This fundraising will increase the assets of both the companies to around ₹25,000 crore, strengthening their balance sheets and positioning them for long-term growth. The group plans to maintain a strict 70:30 debt-to-equity ratio and has forecast a total investment of around ₹50,000 crore for future projects.

This bold investment strategy underlines Reliance’s commitment to its expansion objectives and reflects the confidence of global investors in the company. As the group gears up for its next phase of growth, this move is expected to play a key role in its presence in India’s infrastructure and energy sectors.