Reliance Infrastructure Limited (NSE : Relinfra ) Best1

Reliance Infrastructure Limited, formerly Reliance Energy Limited and Bombay Suburban Electric Supply, is an Indian private sector enterprise involved in power generation, infrastructure, construction and defence. It is part of the Reliance Anil Dhirubhai Ambani Group

Relinfra – CMP Rs. 316.29  on 21-09-2024

Reliance Infrastructure Limited, Reliance Infrastructure, led by Anil Ambani, is seeking to raise Rs. 6014 crore to support its expansion plans. The company will initially raise Rs. 3014 crore through a preferential issue, followed by an additional Rs. 3000 crore through a qualified institutional placement (QIP) transaction.

Reliance Infra, with a market cap of Rs. 11280 crore and near-zero debt, operates in various sectors, including road projects, power distribution in Delhi, and defense equipment manufacturing in collaboration with Rafale. The preferential issue will augment the company’s networth to Rs. 12000 crore from Rs. 9000 crore, supporting its participation in high-growth sectors.

Purpose Of Fund Raise
The funds from the share sales will be used to expand the company’s business operations directly or through its subsidiaries and joint ventures. The money will also help meet long-term working capital needs.

New Delhi, Sep 18 (PTI) Anil Ambani’s Reliance Infrastructure Ltd has slashed its standalone debt by 87 per cent to Rs 475 crore after it cleared outstanding dues of Life Insurance Corporation of India, ICICI Bank and other lenders, the firm said on Wednesday.

It also reached an agreement with Adani Electricity Mumbai Ltd (AEML) and Adani Energy Solutions Limited (AESL), formerly known as Adani Transmission Ltd. Following this, both companies agreed to withdraw arbitration claims against each other.

Reliance Infra had in 2022 filed an arbitration claim of Rs 13,400 crore in relation to a deal to sell its Mumbai power-distribution business to Adani Transmission Ltd.

It did not give details of the agreement reached with the Adani group firm.

“Reliance Infrastructure Ltd (Reliance Infra) announced that Invent Assets Securitisation and Reconstruction Private Ltd, a lender to the company, has novated certain charged securities to recover its dues. As a result, Invent ARC’s entire fund based outstanding amount has been reduced to zero,” it said in a statement.

Financial Performance
As per, Reliance Power’s latest financial update, revenue increased by 4 percent to Rs.1,992 crore, while the net loss decreased to Rs.98 crore compared to the same quarter last year.

For Q1 FY25, Reliance Infrastructure Ltd reported a 30 percent revenue rise to Rs.7,193 crore. The company’s net loss was Rs.93 crore, reduced from the same quarter a year ago.

Reliance Infrastructure Ltd (NSE : Relinfra)

Technical View

•  On Daily and Weekly Chart, the stock is now showing momentum triple pattern theory which is a sign of bullish sentiments.
• Relinfra shares hit fresh 52-week high
• On Monthly chart, the stock has been continuously trading above 20EMA from year 2021 which is shows upside momentum in the stock
• Weekly RSI indicator heading towards the overbought zone level.
• On weekly chart, the stock price showing strong bullish candle breakout of consolidation phase with huge increase in volume.
• Based on the above technical points, can expect further upside move in the stock in upcoming days.

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