Anil Ambani-led Reliance Infrastructure shares gained in the early session on September 30, ahead of its board meeting to raise funds and its successful win as the Calcutta High Court has upheld a Rs 780-crore arbitration award in favour of Reliance Infrastructure.
Reliance Infrastructure was in a dispute with West Bengal-based Damodar Valley Corporation. Over a decade ago, Reliance Infrastructure had won a contract to set up a 1,200 MW thermal power plant in Purulia in West Bengal for Rs 3,750 crore.
The project was delayed due to disputes and other reasons, leading to DVC seeking damages from Reliance Infrastructure. However, the firm challenged this, and an arbitration tribunal in 2019 ruled in favour of the company and directed DVC to pay Rs 896 crore to the company.
Additionally, the company's board of directors will meet tomorrow, on October 1, to raise funds through a preferential issue, qualified institutional placement, rights issue, or foreign currency convertible bonds.
At 9.18 am, Reliance Infrastructure shares were quoting Rs 329.84, up 2.13 percent on the NSE compared to the previous close.
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This comes after Reliance Infrastructure's board gave its approval to raise Rs 3,014.4 crore through a preferential issue of up to 12.56 crore equity shares at an issue price of Rs 240 apiece, on September 19.
The preferential issue will be made to promoter group entity Risee Infinity Private Limited and other non-promoter entities Florintree Innovation LLP, Fortune Financial & Equities Services Private Limited, the company said in a regulatory filing, adding that the issue will result in enhancing the promoter’s equity stake.
The issue will involve investments from former Blackstone executive Mathew Cyriac, participating through Florintree Innovation, and equity investor Nimish Shah, investing via Fortune Financial & Equities Services. Together, they will contribute Rs 1,200 crore for a minority stake in Reliance Infrastructure.
Shares of Reliance Infrastructure have skyrocketed a whopping 60.5 percent over the past month. In comparison, the benchmark Nifty 50 gained 3.6 percent during the same time.
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