Reliance Infrastructure rose 2.96% to Rs 492.20 at 14:32 IST on BSE on reports the Bombay High Court allowed the company, which leads the consortium that operates the metro, to charge higher fares.
Meanwhile, the BSE Sensex was up 346.52 points, or 1.29%, to 27,255.34.
On BSE, so far 3.69 lakh shares were traded in the counter, compared with an average volume of 3.65 lakh shares in the past one quarter.
The stock hit a high of Rs 494.95 and a low of Rs 480.85 so far during the day. The stock hit a 52-week high of Rs 820 on 10 June 2014. The stock hit a 52-week low of Rs 350.85 on 5 February 2014.
The stock had underperformed the market over the past one month till 7 January 2015, sliding 18.84% compared with 5.44% fall in the Sensex. The scrip had also underperformed the market in past one quarter, sliding 15.73% as against Sensex's 2.42% rise.
The large-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.
According to reports, Mumbai Metro fares will increase from Friday, 9 January 2015, with the Bombay high court today, 7 January 2015, approving MMOPL to charge fares in the range of Rs 10-40 for the Versova-Andheri-Ghatkopar route.
Reliance Infrastructure-led Mumbai Metro One (MMOPL), which is the special purpose vehicle operating Mumbai's first Metro rail line between Versova and Ghatkopar via Andheri, was locked in a legal battle with the Mumbai Metropolitan Region Development Authority (MMRDA) over the fixation of fares for the Metro.
A single-judge bench of of the High Court had, on 24 June 2014, dismissed a petition filed by the MMRDA, a stakeholder in the consortium, challenging the hike by Reliance Infrastructure (RInfra) on the opening fares. The MMRDA had then appealed against the order before a bench headed by the Chief Justice.
According to MMRDA, the consortium had agreed on the structure under which fares were to be Rs 9 (up to 3 kilometres), Rs 11 (from 3 to 8 kilometres) and Rs 13 (for more than 8 kilometres).
MMOPL has, however, now fixed the initial fares as Rs 10, Rs 20, Rs 30 and Rs 40.
The MMOPL reportedly told the court it was suffering losses of over Rs 80 lakh on a daily basis, and the average daily passenger traffic too is low by over 30% than the estimates. Even the proposed hike will lead to a daily loss in excess of Rs 50 lakh, MMOPL reportedly said.
RInfra-led MMOPL has constructed the 11.4-kilometre metro route on a public-private partnership model. The company, along with private firm Veolia Transport, holds a 74% stake in the consortium, while the rest 26% is held by MMRDA.
On a consolidated basis, RInfra reported 1.07% rise in net profit to Rs 431.19 crore on 14.91% fall in total income to Rs 4487.08 crore in Q2 September 2014 over Q2 September 2013.
Towards the end of the Q2 September 2013, the Parent company had diluted its holding in SU Toll Road, TD Toll Road and TK Toll Road each from 100% to 49% and in the two joint ventures, BSES Rajdhani Power and BSES Yamuna Power from 49% to 28.82%. In view of above dilution, the figures of the quarter ended 30 September 2014 and half year ended 30 September 2014 are not comparable with the figures for the corresponding quarter and half year respectively, Reliance Infrastructure said.
RInfra 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. RInfra is also the leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution, power trading. The company also provides engineering, procurement and construction (EPC) services for developing power and road projects.
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