Shares of Anil Dhirubhai Ambani Group (ADAG) company Reliance Infrastructure (RInfra) hit an over two-year high of Rs 105.90, up 5 per cent on the BSE in intra-day trade on Friday. The stock of the electric utility company was quoting at its highest level since May 30, 2019, and crossed the Rs 100-mark after a gap of over two years.
In the past one month, the stock of RInfra has rallied 105 per cent, as compared to a 1 per cent decline in the S&P BSE Sensex. In the last two months, it has zoomed 221 per cent as against a 9 per cent rise in the benchmark index. The stock had hit an all-time low of Rs 8.65 in March 2020 and a record high of Rs 2,632 in January 2008.
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.
On Sunday, June 13, 2021, the board of RInfra approved the subscription of preferential issue of up to 595 million equity shares and up to 730 million warrants convertible into an equivalent number of equity shares of Reliance Power, by conversion of outstanding debt including interest aggregating up to Rs 1,325 crore.
Shareholding of Reliance Infra and promoter group in Reliance Power will increase to around 25 per cent after the issue of equity shares and will further increase to over 38 per cent post-conversion of warrants. Reliance Power has one of the largest portfolios of power projects in the private sector in India, based on coal, gas and renewable energy, with an operating portfolio of 5,945 megawatts.
Meanwhile, on April 1, RInfra and YES Bank also announced a sale transaction of Reliance Centre, Santacruz, Mumbai to YES Bank for Rs 1,200 crore. The entire proceeds from the sale of Reliance Centre were utilised only to repay the debt of YES Bank, RInfra had said in the exchange filing.