Reliance Infra zooms as Calcutta HC upholds ₹780 Crore arbitration win

30 Sep 2024 , 03:27 PM

Reliance Infrastructure, led by Anil Ambani, saw its shares rise in the early session on 30 September, ahead of a board meeting to seek cash and a successful win after the Calcutta High Court maintained a ₹780-Crore arbitration verdict in its favour.

Reliance Infrastructure was at odds with West Bengal-based Damodar Valley Corporation. More than a decade ago, Reliance Infrastructure was awarded a ₹3,750 Crore contract to build a 1,200 MW thermal power plant in Purulia, West Bengal.

The project was delayed due to conflicts and other issues, prompting DVC to seek damages from Reliance Infrastructure. However, the firm disputed this, and in 2019, an arbitration tribunal decided in favour of the corporation, ordering DVC to pay ₹896 Crore to it.

Furthermore, the company’s board of directors will meet tomorrow, October 1, to consider raising capital through a preferential issue, qualified institutional placement, rights offering, or foreign currency convertible bonds.

On September 19, Reliance Infrastructure’s board approved a preferential offer of up to 12.56 lakh equity shares at an issue price of ₹240 each, raising ₹3,014.4 Crore.

At around 2.50 PM, Reliance Infra was trading 4.19% higher at ₹336.49, against the previous close of ₹322.95 on NSE. The counter touched an intraday high and low of ₹345.50, and ₹324.35 on NSE.

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