RInfra gains after winning case against DMRC

Reliance Infrastructure rose 1.28% to Rs 438.65 at 14:48 IST on BSE after the company said it won its case against the Delhi Metro Rail Corporation in the Delhi High Court.

The announcement was made during trading hours today, 6 March 2018.

Meanwhile, the S&P BSE Sensex was down 184.38 points, or 0.55% to 33,562.40.

On the BSE, 3.60 lakh shares were traded in the counter so far compared with average daily volumes of 3.02 lakh shares in the past two weeks. The stock had hit a high of Rs 450.60 and a low of Rs 436 so far during the day. The stock hit a 52-week high of Rs 630 on 12 May 2017. The stock hit a 52-week low of Rs 390.60 on 15 November 2017.

The Delhi High Court (HC) has upheld the arbitration award of Rs 2950 crore as compensation along with interest to Delhi Airport Metro Express (DAMEPL), a subsidiary of Reliance Infrastructure (RInfra), by a three-member Arbitration Tribunal. Reliance Infrastructure stands to get Rs 5060 crore from the award, which it shall entirely utilize to reduce its consolidated debt. This amount is arbitration award amount plus interest till 31 March 2018.

The HC upheld the validity of the award granted by the three-member Arbitration Tribunal unanimously on the basis of termination provisions of the Concession Agreement, which DAMEPL had utilized to terminate its agreement with Delhi Metro Rail Corporation (DMRC).

The compensation awarded by the tribunal was challenged in Delhi HC by DMRC. The award had been granted as a result of breach by DMRC of its obligations under the Concession Agreement and Material Adverse Effect on the ability of DAMEPL to perform its obligations under the Concession Agreement. The tribunal was constituted from a panel nominated by DMRC. Now the award has been upheld by the Delhi HC.

The three-member Arbitration Tribunal, formed out of the DMRC-nominated panel as per the Concession Agreement in September 2013. It gave its award in May 2017 after hearing the case for almost four years. The tribunal heard the submissions made by both the parties and after detailed proceedings in 68 hearings, it had issued its final order whereby it had awarded the compensation to DAMEPL.

On a consolidated basis, net profit of Reliance Infrastructure declined 19.6% to Rs 301.38 crore on 1.7% rise in net sales to Rs 5659.34 crore in Q3 December 2017 over Q3 December 2016.

Reliance Infrastructure (RInfra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.

Powered by Capital Market - Live News