Reliance Infrastructure rises 6.5% as it wins ₹780 crore arbitration dispute against Damodar Valley Corporation

Stock Market Today: Reliance Infrastructure share price gained 6.5% during the intraday trade on Monday, September 30 after the company said it won ₹780 crore arbitration dispute against Damodar Valley Corporation.

Reliance Infrastructure share price opened at ₹330 on the BSE, over 2% higher. It further rose to ₹344, marking a rise of nearly 6.5%.

Reliance Infrastructure in a release last week announced that on September 27, 2024, the Division Bench of Hon'ble High Court of Calcutta delivered its judgment in a petition filed by Damodar Valley Corporation challenging the arbitration award under Section 34, dated September 29, 2023, amounting to approximately ₹780 crore, including accrued interest in favour of the Company concerning the Raghunathpur Thermal Power Project.

“The Division Bench of the Hon'ble High Court, with the exception of relief on pre-award interest and reduction in rate of interest on bank guarantee totalling to Rs181 crore, and upheld the award, totalling approximately ₹780 crore, including accrued interest. In addition, the bank guarantee of ₹600 crore will also be released,” said the company in a filing to the stock exchanges.

Reliance Infrastructure's share price has gained almost 60% during last one month as it remains in the spotlight due to various favourable developments.

A meeting of the Board of Directors of Reliance Infrastructure is also scheduled to be held on Tuesday, October 1, 2024, inter alia, to consider and approve the raising of long-term resources from domestic and/or global markets. This could be done through an issue of equity shares, equity-linked securities, warrants convertible into equity shares, by way of preferential issue and/or qualified institutional placement and/or rights issue and/or foreign currency convertible bonds or any other method, as per the company release.

Reliance Infrastructure has also reduced its standalone external debt from ₹3,831 crore to ₹475 crore, as per the company. 

Reliance Infrastructure also has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders.

With considerable developments taking place, it is not surprising that the company's share price is rising.

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