Reliance Infrastructure share price gained over 2 percent intraday on June 7 after the company's board approved a plan to raise Rs 550 crore via preferential issue.
At the meeting of Board of Directors held earlier in the day, the proposal of preferential allotment of equity shares to promoters and Värde Investment Partners, LP, at a price of Rs 62 each based on SEBI (ICDR) regulations, was approved, RInfra said.
"The Board of Directors of Reliance Infrastructure Limited at its meeting has approved raising of funds up to Rs 550.56 crore by preferential allotment of up to 8.88 crore equity shares and/or warrants convertible into equivalent number of equity shares of the company to promoter group and VFSI Holdings Pte Limited, an affiliate of Värde Investment Partners, LP," the statement issued by the company said.
"The board approved seeking approval of the members of the company for the above proposal through postal ballot. The above shall be subject to all requisite permissions, sanctions and approvals as may be necessary," the statement added.
The stock was trading at Rs 71.35, up Rs 1.50, or 2.15 percent. It has touched a 52-week high of Rs 73.30. It has touched an intraday high of Rs 73.30 and an intraday low of Rs 70.10.
Reliance Infrastructure on May 28 said its consolidated net loss for the March quarter of FY21 narrowed to Rs 46.53 crore. As per the company's BSE filing, it had reported a consolidated net loss of Rs 153.84 crore in the year-ago period.
Analysts, however, are not convinced with the fundamentals of these two stocks. "Overall fundamentals of both the stocks are not good, so better to keep them as short and medium-term bets," said Nitin Shahi, Executive Director, FINDOC.
On technical charts, a lot of buying was observed on the daily chart and volume was two-three of average volume traded, Shahi said.
"One can hold on to positions with a strict stop loss of Rs 55 for the targets of Rs 80-100," he said.Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.