Reliance Infra shares experienced a boost in early trading on September 30, driven by anticipation of its board meeting to discuss fundraising and the recent ruling by the Calcutta High Court, which upheld a ₹780 crore arbitration award in favor of the company.
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The dispute originated over a decade ago when Reliance Infrastructure was awarded a contract to build a 1,200 MW thermal power plant in Purulia, West Bengal, valued at ₹3,750 crore. Delays due to various disputes led the Damodar Valley Corporation (DVC) to seek damages from Reliance, prompting the company to challenge this claim.
In 2019, an arbitration tribunal ruled in favor of Reliance, directing DVC to pay ₹896 crore. Now, as the company prepares for its board meeting on October 1, it plans to explore funding options, including a preferential issue, qualified institutional placement, rights issue, or foreign currency convertible bonds.
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At 9:18 am, Reliance Infrastructure shares were trading at ₹329.84, reflecting a 2.13 percent increase on the NSE from the previous close. The board had recently approved a ₹3,014.4 crore fundraising plan through a preferential issue of up to 12.56 crore equity shares at ₹240 each.
This issue aims to enhance the promoter’s equity stake and will include investments from former Blackstone executive Mathew Cyriac and equity investor Nimish Shah, who together will contribute ₹1,200 crore for a minority stake. Over the past month, Reliance Infrastructure shares have surged by 60.5 percent, significantly outperforming the benchmark Nifty 50, which rose by 3.6 percent during the same period.
