Reliance Infra heaves sigh of relief!

Reliance Infrastructure is in the limelight today morning. The stock rose to Rs.630, a rise of 6.5% over yesterday’s close and just Rs.5 short of its 52-week high of Rs.635.

The market is enthused finally some money will start coming in for the company. The company announced that its subsidiary Delhi Metro has won a Rs 2,950-crore arbitral award against the Delhi Metro Rail Corporation. This money will surely help the debt ridden company to bring down the burden.

This will now allow the company to recover the Rs 1,050 crore it has invested in the airport metro line and repay lenders’ debt worth Rs 1,900 crore. Eight public sector banks will benefit from the decision as their outstanding debt from the metro project would be paid.

According to Cabinet Committee of Economic Affairs-approved guidelines issued by Niti Aayog on September 2016, DMRC will have to pay at least 75 percent of the award worth Rs 2,210 crore to R-Infra against a bank guarantee even if DMRC proposes to challenge the award.