Reliance Infra rides to new high

Reliance Infrastructure has been hitting new highs ever since it was known that its Mumbai Metro is to be launched in a couple of days. The Metro was launched yesterday and the stock today hit a new high at Rs,819.80 and continues to remain around the same levels.

Apart from the launch, the stock is up on news that it might be get full control over the Metro. The state government in February recommended to the Union government to make Mumbai Metro One Private Limited (MMOPL) the metro railway administrator (MRA) for the Versova-Andheri-Ghatkopar (VAG) line. Of the 11 directors on the board of MMOPL, eight belong to RInfra. If this happens, it would mean that VAG could become a private sector metro and MMOPL will have full power to acquire, hold and dispose of all kinds of properties owned by it, both movable and immovable. It could also get the power to develop any metro railway land for commercial use and execute any lease or grant any licence in respect of the property held by it. There is no approval as yet but the market seems to be celebrating the new VAG line.