This Anil Ambani-owned company has risen over 50% in the last six trading sessions after reducing its debt; check details

The company’s board last week approved plans to raise ₹3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at an issue price of ₹240 apiece. Additionally, it also cleared plans to raise up to ₹3,000 crore by making a qualified institutional placement (QIP).

The move helped Reliance Infrastructure to reduce its external debts from ₹3,831 crore to just ₹475 crore.

With debt levels now under control, investors are focussing on the company’s upcoming plans. According to news reports, Reliance Infrastructure may soon foray into the electric vehicles (EV) business.

Reports suggest that Reliance Infra has already hired the former India executive of Chinese EV manufacturer BYD Co to advise on the company’s EV plans. The tie-up may be announced this year, the report added.

A Reuters report also said that Reliance Infra may announce its new tie-ups soon. The company is reportedly conducting a cost feasibility study for building an EV plant with an initial capacity of 2.5 lakh vehicles a year, which could later scale up to 7.5 lakh.

In the past five sessions, shares of Reliance Infrastructure have already surged a whopping 40% after the reduction in debt levels. On Monday, the stock closed 3.58% higher at ₹327.60 on the National Stock Exchange of India (NSE).

In fact, the company’s borrowing has steadily been decreasing since 2016. The borrowings fell from ₹11,510 crore in FY23 to ₹9,895 crore in FY24. The debt-to-equity ratio has also improved from 1.23x in FY23 to 1.11x in FY24.