Reliance Infrastructure share price hits 52-week high logging 13% intraday gain; NCLAT suspends NCLT order

Mint

2 days ago

Shares of Reliance Infrastructure surged sharply on Wednesday, June 4, climbing nearly 13 percent to touch a new 52-week high of ₹ 385.90 in intra-day trading. The spike came after a significant legal relief from the National Company Law Appellate Tribunal (NCLAT), which suspended an earlier order passed by the National Company Law Tribunal (NCLT) that had admitted the company into insolvency proceedings.
The development brought cheer to investors, who saw the stock rally as a positive signal of business continuity and legal clarity for the Anil Ambani-led company.
In an exchange filing, Reliance Infrastructure confirmed that the NCLAT had stayed the insolvency order originally issued by the NCLT on May 30. The NCLT had admitted the company into the corporate insolvency resolution process based on a petition filed by IDBI Trusteeship Services Ltd, which claimed a default of ₹ 88.68 crore and sought interest of 1.25 percent per month.
The plea originated from a dispute involving Dhursar Solar Power Pvt. Ltd., which had entered into an energy purchase agreement with Reliance Infrastructure back in 2012. According to IDBI Trusteeship, Reliance Infra had defaulted on 10 invoices issued between 2017 and 2018 for the supply of solar energy. The trusteeship firm, acting on behalf of Dhursar Solar, claimed pending dues under the agreement and sought action under the Insolvency and Bankruptcy Code (IBC).
Following the NCLT's admission order, Reliance Infrastructure swiftly took corrective steps. The company notified the exchanges that it had made full payment of ₹ 92.68 crore to Dhursar Solar Power Pvt. Ltd. This included the principal amount as well as interest dues under the said energy agreement.
With the payment completed, Reliance Infra approached the NCLAT, arguing that the insolvency proceedings had become infructuous since there was no outstanding liability left. The appellate tribunal agreed and suspended the NCLT order, granting immediate relief and averting the risk of the company being dragged through an insolvency process.
This turn of events triggered a bullish sentiment in the market, with investor confidence rebounding swiftly. The stock, which has seen a volatile past, rallied to its highest level in a year as fears of insolvency dissipated.
The stock gained over 12.8 percent to its 52-week high of ₹ 385.90. It has now soared 168 percent from its 52-week low of ₹ 143.70, hit in June 2024. In the last 1 year, the stock has surged over 97 percent. Moreover, just in June so far, it has advanced 15 percent after a 30 percent rally in May. However, It fell 1.5 percent in April after a 22 percent jump in March. In January and February, it lost 17.6 percent and 15.4 percent, respectively.
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