Shares of the Anil Ambani Group surged 3 percent after domestic lenders transferred their loan exposure in Mumbai Metro One to the National Asset Reconstruction Company (NARC). This move is seen as a significant step towards addressing financial challenges related to the metro project, boosting investor confidence in the group’s prospects.
Share Price Movement
In Tuesday’s trading session, Reliance Infrastructure Ltd’s shares hit a 52-week high of Rs.306.70 per share, up 3.2 percent from the previous closing price of Rs.297.05 apiece. The share has since retreated and is trading at Rs.297.90 per share.
What led to the rise
Reliance Infrastructure, through its joint venture Mumbai Metro One Private Limited (MMOPL), received a Notice of Assignment from Canara Bank (Lead Bank) on December 27, 2024.
The notice states that Canara Bank, along with Indian Bank, Bank of Maharashtra, State Bank of India, and IDBI Bank Limited, has transferred their entire rupee loan exposure in MMOPL to the National Asset Reconstruction Company Limited (NARC).
MMOPL is a 74 percent owned subsidiary of Reliance Infrastructure, with the Mumbai Metropolitan Region Development Authority (MMRDA) holding 26 percent. The transfer was carried out following a transparent process in line with Reserve Bank of India guidelines.
Diversified business portfolio
Reliance Infrastructure Limited (R-Infra) has a diversified portfolio in the EPC sector, handling turnkey contracts for thermal, gas-based power projects, metro systems, railways, and road infrastructure across India.
As of March 31, 2024, its E&C Division holds an order book of Rs. 1,957 crore. R-Infra operates power distribution subsidiaries BSES Rajdhani and BSES Yamuna in Delhi, and owns several toll road assets across India, though some projects are facing challenges due to loan repayment delays.
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Financial Performance
According to Reliance Infrastructure’s latest financial update, revenue increased by 2 percent to Rs.7,258 crore in Q2 FY25 from Rs.7,153 per share in Q2 FY24. The company’s net profits improved significantly to Rs.4,195 crore, from Rs.182 crore in the same period due to a substantial increase in other incomes.
Company Profile
Reliance Infrastructure Ltd is a key player in India’s infrastructure sector, with a strong focus on power generation, transmission, and urban infrastructure development, and a significant presence in Mumbai and Delhi.
Written by – Siddesh S Raskar
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