Reliance Infra gains after signing MoU with UAE firm

Reliance Infrastructure rose 0.74% to Rs 326.50 at 15:30 IST on BSE after the company said its subsidiary, Reliance Defence, signed a pact with UAE-based Abu Dhabi Ship Building for naval and commercial services.

The announcement was made during trading hours today, 7 September 2015.

Meanwhile, the BSE Sensex was down 308.09 points, or 1.22%, to 24,893.81.

On BSE, so far 3.95 lakh shares were traded in the counter, compared with an average volume of 3.84 lakh shares in the past one quarter.

Trading was volatile in the counter. The stock rose 2.38% at the day's high of Rs 331.80 in intraday trade. The stock fell 0.86% at the day's low of Rs 321.30 in intraday trade.

The stock hit a 52-week high of Rs 722.50 on 5 September 2014. The stock hit a 52-week low of Rs 282.20 on 25 August 2015.

The stock had underperformed the market over the past one month till 4 September 2015, falling 23.56% compared with 10.22% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 12.57% as against Sensex's 6.01% decline.

The mid-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.

Reliance Infrastructure said during market hours today, 7 September 2015, that Reliance Defence, a wholly owned subsidiary of the company, has signed a memorandum of understanding (MoU) with Abu Dhabi Ship Building (ADSB), a leading provider of construction, repair and refit services for naval, military and commercial vessels. Under this MoU, RDL and ADSB are investigating the opportunity to set up a strategic partnership for the construction of naval ships, including frigates, destroyers and other specialized vessels for catering to the market in GCC (Gulf Cooperation Council). The agreement could also see ADSB delivering maintenance, repair, overhaul and refit services to the vessels, in line with regional requirements. Reliance Group is likely to use its newly acquired shipbuilding facilities at Pipavav for implementation of this collaboration.

On a consolidated basis, Reliance Infrastructure's net profit fell 12.4% to Rs 400.91 crore on 3.2% rise in net sales to Rs 4266.11 crore in Q1 June 2015 over Q1 June 2014.

Reliance Infrastructure is amongst the largest infrastructure companies, developing projects through various special purpose vehicles (SPVs) in several high growth sectors within the infrastructure space i.e. roads, metro rail and cement. The company is also the leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution and power trading. The company also provides engineering, procurement and construction (EPC) services for developing power and road projects.

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