Reliance Infrastructure nears 2-year high; stock zooms 103% in a month

RCapital (up 5% at Rs 13.37), RCom (up 10% at Rs 2.12), RPower (up 5% at Rs 8.68), Reliance Home (up 5% at Rs 2.73) and Reliance Naval (up 5% at Rs 3.20) from ADAG were locked in upper circuit

Shares of Anil Dhirubhai Ambani Group (ADAG) company, Reliance Infrastructure (RInfra) were locked in 10 per cent upper circuit at Rs 68.20 on the BSE on Thursday on the back of heavy volumes.

The stock of the electric utilities company was trading at its highest level since June 2019. It was trading higher for the fifth straight day. Till 01:18 pm, a combined 14.2 million equity shares had changed hands and there were pending buy orders for 1.55 million shares on the NSE and BSE. It had hit an all-time low of Rs 8.65 in March 2020 and a record high of Rs 2,632 in January 2008.

In the past one month, the stock has gained 103 per cent from the level of Rs 33.55, as compared to 4.5 per cent rise in the S&P BSE Sensex.

The country's largest mortgage lender Housing Development Finance Corporation (HDFC) has continued to offload shares of RInfra through stock exchanges in the secondary market, which were held by it through the invocation of pledged shares. On Tuesday, May 26, the corporation further sold 3.19 million shares of RInfra worth Rs 18.77 crore.

The corporation had sold 8.11 million shares, representing 3.08 per cent of the share capital of RInfra, between May 18- 24, 2021 (including these dates), HDFC said in a regulatory filing on Tuesday. "The sale was carried out through stock exchanges at the prevailing market price. The aggregate consideration received for the sale of 8.11 shares is Rs 43.91 crore,” HDFC said.

Since April, HDFC has sold nearly 5 percentage point stake of RInfra via open market. The mortgage lender held 8.25 per cent stake in ADAG Company at the end of March 2021 quarter, the shareholding pattern data shows. The names of the sellers were not ascertained immediately.

Meanwhile, on April 1, RInfra and YES Bank had announced a sale transaction of Reliance Centre, Santacruz, Mumbai to YES Bank for Rs 1,200 crore. The entire proceeds from sale of Reliance Centre, Santacruz is utilized only to repay the debt of YES Bank, RInfra had said in exchange filing.

The board of directors of RInfra is scheduled to meet tomorrow, May 28, 2021, inter alia, to consider and approve the audited financial results for the quarter and financial year ended March 31, 2021.

Apart from RInfra, other ADAG stocks like Reliance Capital (up 5 per cent at Rs 13.37), Reliance Communications (up 10 per cent at Rs 2.12), Reliance Power (up 5 per cent at Rs 8.68), Reliance Home Finance (up 5 per cent at Rs 2.73) and Reliance Naval and Engineering (up 5 per cent at Rs 3.20) were locked in their respective upper circuits on the BSE. In comparison, the S&P BSE Sensex was up 0.23 per cent at 51,137 points.