Reliance Infra: SC upholds arbitration award

Reliance Infra: SC upholds arbitration award

Shares of Reliance Infrastructure, part of Anil Ambani’s Reliance Group, hit its upper circuit limit of 5% to Rs 74.20 today after the Supreme Court upheld the arbitration award won by the company against the Delhi Metro Rail Corporation.
The company had won an arbitration award of Rs 4,600 crore including interest accrued. The Supreme Court’s verdict will bring the much-needed relief to the debt-laden group as it can utilize the proceeds for repayment of its existing debt.

Reliance Infra had won an arbitration case against DMRC after running into dispute over the operation of the Airport metro route in Delhi that was constructed and operated by the company.
Reliance Infra currently has a consolidated debt of Rs 14,260 crore and net debt of Rs 3,808 crore. The company has recently hinted at efforts to become debt free by March 2022.
In July, the company was reported to have initiated talks with Brookfield, Apollo Global and CDPQ to sell its Pune-Satara toll road.

Disclaimer –
This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.