Reliance infra share price

Reliance Infrastructure Shares Surge as Calcutta High Court Upholds Rs 780-Crore Arbitration Award

In an eventful turn of events for Reliance Infrastructure, the Anil Ambani-led company’s shares spiked early on September 30, as the Calcutta High Court upheld a significant Rs 780-crore arbitration award in its favor. The court’s decision adds another layer of success to the company, which has been in a long-standing legal battle with the West Bengal-based Damodar Valley Corporation (DVC).

The Legal Triumph: A Rs 780-Crore Victory

This legal victory stems from a dispute over a delayed project, which has been ongoing for over a decade. Reliance Infrastructure had secured a Rs 3,750 crore contract to build a 1,200 MW thermal power plant in Purulia, West Bengal. Unfortunately, the project was delayed due to disputes and other complications, resulting in DVC seeking damages from Reliance Infrastructure.

In response, Reliance Infrastructure challenged DVC’s claim, leading to an arbitration tribunal ruling in 2019 that favored the company. The tribunal directed DVC to pay a substantial Rs 896 crore to Reliance Infrastructure. Now, with the Calcutta High Court upholding the tribunal’s decision, the company is celebrating a crucial win, marking an end to the lengthy legal saga.

Upcoming Fundraising Plans: Preparing for Growth

Alongside this legal victory, Reliance Infrastructure is also gearing up for a crucial board meeting on October 1. The company is set to discuss its plan to raise funds through various channels, including a preferential issue, qualified institutional placement, rights issue, or foreign currency convertible bonds.

This move comes on the heels of a previous decision by the board on September 19 to raise Rs 3,014.4 crore through a preferential issue of 12.56 crore equity shares at an issue price of Rs 240 per share. The funds will bolster the company’s growth and enhance the equity stake of its promoters.

Key Investors Backing the Deal

Reliance Infrastructure’s preferential issue has garnered attention from several prominent investors. Promoter group entity Risee Infinity Private Limited, along with other non-promoter entities such as Florintree Innovation LLP and Fortune Financial & Equities Services Private Limited, will participate in the issue.

Former Blackstone executive Mathew Cyriac, through Florintree Innovation, and equity investor Nimish Shah, via Fortune Financial & Equities Services, will collectively contribute Rs 1,200 crore for a minority stake in Reliance Infrastructure. This financial backing signals strong investor confidence in the company’s future prospects.

Stock Market Surge: Reliance Infrastructure’s Impressive Performance

As of 9:18 am on September 30, Reliance Infrastructure shares were trading at Rs 329.84 on the NSE, reflecting a 2.13% increase from the previous close. The stock has been on a remarkable upward trajectory, skyrocketing by an impressive 60.5% over the past month. Reliance infra share price, This surge comes in stark contrast to the benchmark Nifty 50, which gained just 3.6% over the same period. The market’s response underscores the growing investor confidence in the company, buoyed by its legal victories and strategic fundraising efforts.

Conclusion:

Reliance Infrastructure’s recent legal win and upcoming fundraising plans mark a turning point for the company. With the Calcutta High Court upholding a Rs 780-crore arbitration award in its favor, the company has overcome a decade-long dispute, positioning itself for growth. Reliance infra share price, The upcoming board meeting to finalize fundraising efforts is another step forward, as prominent investors signal confidence in Reliance Infrastructure’s future. The stock’s impressive rise in the past month only highlights the market’s faith in the company’s strategic direction. As Reliance Infrastructure looks ahead, it’s clear that it’s not just bouncing back—it’s gearing up for a significant leap forward.

FAQs:

1.What was the legal dispute between Reliance Infrastructure and Damodar Valley Corporation?

A. The dispute was over a delayed project to build a 1,200 MW thermal power plant in Purulia, West Bengal.

2.How much compensation was awarded to Reliance Infrastructure?

A. The arbitration tribunal directed DVC to pay Rs 896 crore, and the Calcutta High Court upheld a Rs 780-crore award.

3.What is Reliance Infrastructure’s latest plan to raise funds?

A. The company’s board will discuss fundraising options on October 1, including a preferential issue, qualified institutional placement, and foreign currency convertible bonds.

4.How much is Reliance Infrastructure aiming to raise through the preferential issue?

A. The company plans to raise Rs 3,014.4 crore through a preferential issue of 12.56 crore equity shares.

5.Who are the key investors involved in the preferential issue?

A. Key investors include Risee Infinity Private Limited, Florintree Innovation LLP, and Fortune Financial & Equities Services Private Limited.

6.Who is Mathew Cyriac, and what role does he play in this investment?

A. Mathew Cyriac, a former Blackstone executive, will invest in Reliance Infrastructure through Florintree Innovation LLP.

7.How has Reliance Infrastructure’s stock performed recently?

A. The company’s shares have surged 60.5% over the past month, significantly outperforming the Nifty 50.

8.What is the significance of the Calcutta High Court ruling for Reliance Infrastructure?

A. The ruling upholding the Rs 780-crore arbitration award is a major legal victory for the company, ending a decade-long dispute with DVC.

9.How will the fundraising impact Reliance Infrastructure’s promoters?

A. The preferential issue will enhance the promoter’s equity stake in the company.

10.Why is Reliance Infrastructure’s stock surge important for investors?

A. The stock surge reflects growing investor confidence in the company’s legal victories, fundraising plans, and future growth prospects.

Reliance infra share price

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