Reliance Infrastructure rose 1.71% to Rs 416.85 at 10:08 IST on BSE after the company said it sold its cement manufacturing subsidiary, Reliance Cement Company, to Birla Corporation.
The announcement was made after market hours yesterday, 4 February 2016. Shares of Birla Corporation were down 0.04% to Rs 394.45.Meanwhile, the BSE Sensex was up 71.55 points, or 0.29%, to 24,409.98.
On BSE, so far 2.75 lakh shares were traded in the counter, compared with an average volume of 6.64 lakh shares in the past one quarter. The stock hit a high of Rs 425.75 and a low of Rs 413.10 so far during the day. The stock hit a 52-week high of Rs 622.05 on 5 January 2016. 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 February 2016, sliding 31.69% compared with 5.01% decline in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 2.71% as against Sensex's 8.34% fall.
The large-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.
Reliance Infrastructure (RInfra) yesterday, 4 February 2016 announced the signing of share purchase agreement with Birla Corporation in relation to 100% sale of its subsidiary Reliance Cement Company (RCCPL). RCCPL has an integrated cement capacity of 5.08 million tonnes per annum (mtpa) at Maihar, Madhya Pradesh and Kundanganj, Uttar Pradesh and a grinding unit of 0.5 Mtpa at Butibori, Maharashtra. Under this transaction Birla Corporation will acquire the 100% shareholding of RInfra in RCCPL. The transaction is subject to approval of the Competition Commission of India and other applicable regulatory approvals.
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RInfra said the deal valued its cement business at Rs 4800 crore ($140 per tonne). The proceeds from the sale will be utilised for the group's debt reduction. The deal is EPS accretive for the company's shareholders.
Reliance Infrastructure's consolidated net profit rose 2.3% to Rs 462.67 crore on 10.6% decline in net sales to Rs 3877.98 crore in Q3 December 2015 over Q3 December 2014.
Reliance Infrastructure (RInfra) is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several high growth sectors within the infrastructure space such as power, roads, metro rail, cement and defence. RInfra is also a leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution and power trading. RInfra also provides engineering, procurement and construction (EPC) services for developing power and road projects. RInfra has recently entered into the defence sector.
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