Shares of Reliance Infrastructure hit a five-year high of Rs 260.80, as they rallied 10 per cent on the BSE in Monday’s intraday trade, on the back of heavy volumes. In the past three trading days, the stock has zoomed 41 per cent as the company signed a settlement agreement with ICICI Bank. The shares were quoting at their highest level since June 2019.
At 12:01 pm, Reliance Infrastructure was trading 8 per cent higher at Rs 256.40, compared to 0.16 per cent decline in the S&P BSE Sensex. The average trading volumes on the counter nearly doubled with a combined 13.53 million equity shares, representing 3.4 per cent of total equity of Reliance Infrastructure, changing hands on the NSE and BSE till the time of writing of this report.
On Friday, Reliance Infra announced that the capacity of a corporate guarantor to the financial facility availed by its associate company, Reliance Power (RPower), has, along with RPower, signed a settlement sgreement with ICICI Bank on March 14, 2024.
The entire obligation with respect to borrowings of RPower with ICICI has been settled and accordingly all potential obligations of the company with respect to the corporate guarantee stands extinguished, the company said.
ICICI Bank holds two hundred eleven equity shares in the company and is neither a related party nor part of the promoter group, it added.
Reliance Infra is engaged in the business of providing engineering and construction (E&C) services for power, roads, metro rail and other infrastructure sectors. The company is also engaged in implementation, operation and maintenance of several projects in defence sector and infrastructural areas through its special purpose vehicles.
It has executed the Mumbai Metro line one project on build, own, operate and transfer basis. Further, the company is also a leading utility company having presence across the value chain of energy businesses.
Meanwhile, shares of RPower were locked in the upper circuit for the second straight day, up 5 per cent at Rs 23.23 on the BSE. It had hit a 52-week high of Rs 33.10 on January 8.
First Published: Mar 18 2024 | 12:34 PM IST
