Anil Ambani, once one of the world’s wealthiest people, is currently in a precarious position. With billions of dollars in debt, this once-complete billionaire’s business’s fairness price collapsed to $523 million in 2019.
Anil Ambani manages companies involved in the telecom, entertainment, financial services, power, and infrastructure sectors as part of the Reliance Group. Ambani is also responsible for India’s largest initial public offering, Reliance Power, which was fully subscribed in less than one minute in 2008, making it the fastest in the Indian capital market.
Who would have guessed that a person who was previously regarded as India’s wealthiest man would one day have a net worth of zero? The 2G Spectrum fraud was linked to Anil Ambani. He was questioned by the CBI, but they were unable to provide any proof against him.
Anil Ambani’s relationship with several banks and lenders was also impacted as a result of his debt default. He was finally hauled into court, where he filed an appeal, claiming that he no longer has any assets to liquidate. Such claims were difficult to swallow because he still owned several exquisite autos, yachts, and villas.
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The Story of Reliance Telecom and Reliance Power – From Riches to Rags
Below, we have talked about the sequences of events that turned once standing-strong companies Reliance Telecom and Reliance Power into nothing, affecting the Reliance share price for various companies which are a part of the group –
Reliance Communications Limited (RCOM)
It was an Indian telecommunications company that provided phone, 2G, 3G, and 4G data services. The company declared bankruptcy in February 2019 after failing to sell assets to satisfy its creditors.
With the launch of its statewide CDMA2000 service on July 15, 2004, Reliance Communications was founded in India as Reliance Infocomm Limited. In 2006, it was renamed Reliance Communications Limited.
The Department of Telecommunication has refused to renew the telecom license of Anil Ambani’s company until it pays Rs. 26,000 Crore in statutory debts. If the bankrupt telco fails to do so, it will be compelled to cede its spectrum and the insolvency proceedings’ asset selling plan will be disrupted. The share price of this company for online intraday trading stands at Rs. 2.65 as of 24th May, 2022.
Reliance Power Limited
Previously known as Reliance Energy Generation Limited (REGL), Reliance Power Limited was founded with the goal of developing, constructing, maintaining, and operating electricity plants in both the Indian and international markets. The agency serves as the only energy distributor in Mumbai’s outskirts. However, they sold their Mumbai operations to Adani Power in 2017.
According to a BSE filing, the company defaulted on a payment of Rs. 300.22 crore on July 31, 2020, including Rs 2.22 billion in interest. Reliance Power’s stock tumbled over 2% in the morning BSE trade on September 1, 2020, a day after the business announced it had failed on payment of Rs 300.22 crore in principle and interest. The company’s current share price is Rs. 50 as of 24 May, 2022.
Anil Ambani appears to have been through it all, from rags to riches, court summons, and trying to pay off his obligations. From a high of Rs 4 lakh crores during the 2008 financial crisis to a low of Rs 2000 crores in 2020, his fortune has tumbled. Experts also feel that his rapid decline is due to some of his wrong investment selections and incapacity to compete in the corporate sector.