For many months markets were wondering what Anil Ambani was going to do with the huge piles of cash lying with his company Reliance Energy.
Reliance Energy is emerging as possibly India's largest project engineering company and the company will need a lot of cash to pull this off. And even though ADAG lost its bid for the Delhi airport, it now plans to connect the airport to the city.
Reliance Energy is in final round for bidding for a 21 km Delhi airport link with an estimated cost of Rs 2,500 crore. It's also in final round for bidding for the Hyderabad MRTS project, which could cost a staggering Rs 14,000 crore. Final price bids is expected by first week of October, which are to be done on highest revenue share basis.
Road projects
The company is also participating in various road projects across India. Reliance Energy expects to bag two road projects in Tamil Nadu and it also plans to bid three big road projects in Tamil Nadu.
Many might have criticized about Reliance Energy bidding too aggressively for Sasan Project but the fine print says that there is more upside to it. Reliance Energy bid Rs 1.19 per unit for the Sasan UMPP but the structure of the bid allows it another 10 paisa more per unit in the final collections.
Its these triggers that sent the Reliance Energy stock up by six per cent on Tuesday to its all time high close.
Analysts have turned very bullish on Reliance Energy's project engineering drive as many have got answers to what the company will do with its Rs 11,000 crore cash its sitting on.
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