Shares of Reliance Infrastructure touched a five-year high of Rs 260.80 as it rebounded 10 per cent on the BSE in Monday’s intraday trade on the back of heavy volumes. In the last three trading days, the stock soared 41 percent as the company signed a settlement agreement with ICICI bank. Shares were trading 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 a 0.16 per cent decline in the S&P BSE Sensex. Average trading volumes in the market almost doubled with a total of 13.53 million shares, representing 3.4 percent of Reliance Infrastructure’s total capital, changing hands on the NSE and BSE till now of writing this report.
Reliance Infra on Friday announced that the capacity of a corporate guarantor of the financial facility enjoyed by its associate company, Reliance Power (RPower), has, along with RPower, signed a settlement agreement with ICICI Bank on March 14, 2024.
The entire obligations relating to RPower’s borrowings from ICICI have been settled and, therefore, all potential obligations of the company in respect of the corporate guarantee are extinguished, the company said.
ICICI Bank holds two hundred and eleven shares in the company and is neither a related party nor a part of the promoter group, it adds.
It executed the Mumbai Metro Line 1 project on build, own, operate and transfer basis. In addition, the company is also a leading utility company, present across the entire energy business value chain.
Meanwhile, RPower shares were stuck in the upper circuit for the second consecutive day, up 5 per cent at Rs 23.23 on the BSE. It had touched a 52-week high of Rs 33.10 on January 8.
First publication: March 18, 2024 | 12:34 p.m. STI