Reliance Infra gains as defence arm signs MoU with EDIC

Reliance Infrastructure rose 2.92% to Rs 346.80 at 14:37 IST on BSE after firm's subsidiary signed a strategic MoU with Emirates Defence Industries, for manufacturing, services, knowledge transfer and technology development from the UAE.

The company made the announcement during market hours today, 28 September 2015.

Meanwhile, the S&P BSE Sensex was down 79.29 points or 0.31% at 25,784.21.

On BSE, so far 2.53 lakh shares were traded in the counter as against average daily volume of 4.01 lakh shares in the past one quarter.

The stock high of Rs 348.45 and a low of Rs 337.10 so far during the day. The stock had hit a 52-week high of Rs 671.50 on 19 November 2014. The stock had hit a 52-week low of Rs 282.20 on 25 August 2015.

The stock had outperformed the market over the past one month till 24 September 2015, jumping 11.02% compared with Sensex's 0.47% rise. The scrip had, however, underperformed the market in past one quarter, sliding 8.6% as against Sensex's 6.73% fall.

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

Reliance Infrastructure's (Reliance Infra) wholly-owned subsidiary Reliance Defence (RDL) signed a strategic memorandum of understanding (MoU) with Emirates Defence Industries Co. (EDIC), a leading integrated defence company in the United Arab Emirates (UAE), and the premier partner for manufacturing, services, knowledge transfer and technology development from the UAE.

RDL and EDIC have agreed to jointly explore the opportunity for manufacturing and building capabilities in defense vehicles, aviation and associated areas, defence equipment and armament manufacturing, defence electronics, commercial and naval ships, MRO of military equipment/platforms. The partnership will explore the opportunity in the UAE defense industry which has many capital expenditures but the costs for setting up facilities, recruiting and developing scientists and engineers are high, Reliance Infra said. The partnership will aim at bringing synergy to bring down operational costs and leverage each others' capabilities, Reliance Infra said in a statement.

On a consolidated basis, Reliance Infrastructure's net profit fell 12.4% to Rs 400.91 crore on 3.2% growth 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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