Reliance Infrastructure’s stock price soared to a five-year peak, reaching Rs 260.80, marking a significant 10% increase during Monday’s trading session on the Bombay Stock Exchange (BSE), driven by a surge in trading volume. Over the last three trading sessions, the company’s stock has witnessed an impressive 41% rise following the announcement of a settlement agreement with ICICI Bank, bringing the shares to their highest value since June 2019.
As of 12:01 pm, the stock was trading up by 8% at Rs 256.40, standing out against the S&P BSE Sensex, which saw a marginal decline of 0.16%. Trading volumes saw a notable increase, with around 13.53 million shares traded, accounting for 3.4% of Reliance Infrastructure’s total equity, across both the National Stock Exchange (NSE) and BSE at the time the report was published.
This rally came after Reliance Infra revealed on Friday that it, along with Reliance Power (RPower), had reached a settlement with ICICI Bank on March 14, 2024. This agreement settled the entire debt obligation of RPower to ICICI Bank, thus nullifying all potential liabilities related to the corporate guarantee provided by Reliance Infra. The company noted that ICICI Bank, holding 211 equity shares, is not considered a related party nor is it part of the promoter group.
Reliance Infra is known for its expertise in engineering and construction (E&C) services across various sectors, including power, roads, metro rail, and infrastructure. It also plays a significant role in the defense sector and infrastructure projects through its special purpose vehicles. Among its notable projects is the operation of Mumbai Metro line one under a build, own, operate, and transfer model. Additionally, the company is a key player in the energy sector, covering a wide range of services.
In related news, shares of RPower also saw a significant uptick, reaching the upper limit for two consecutive days with a 5% increase at Rs 23.23 on the BSE, and even hitting a 52-week high of Rs 33.10 on January 8.
