.jpg)
Synopsis: Reliance Infrastructure's stock experienced a notable 8% increase following the company's announcement of a major debt reduction. The firm cut its standalone external debt from Rs3,831 crore to Rs475 crore, significantly boosting investor confidence. The net worth of the company has now risen to Rs9,041 crore. Additionally, the company plans to raise long-term resources from domestic and international markets, potentially by issuing equity shares or other financial instruments, with the decision expected during a board meeting on September 19, 2024.
On Wednesday, Reliance Infrastructure Ltd saw its stock rise by 8%, reaching Rs254.40, increasing its market capitalization to Rs9,859 crore. This surge followed the company's announcement of a significant reduction in its standalone external debt from Rs3,831 crore to Rs475 crore, boosting its net worth to Rs9,041 crore. The reduction in debt came through clearing obligations to several lenders, including Life Insurance Corporation of India (LIC), Edelweiss Asset Reconstruction, ICICI Bank, Union Bank, and others. This action has substantially lowered the firm's liabilities, further enhancing investor confidence.
Moreover, technical indicators show that Reliance Infrastructure's stock is trading above multiple key moving averages, with a Relative Strength Index (RSI) of 63.4, suggesting that the stock is neither overbought nor oversold, pointing toward stability in the short term.
Looking ahead, the company's board is scheduled to meet on September 19, 2024, to consider raising long-term capital from domestic and international markets. The board will deliberate on methods such as equity shares or convertible securities to boost its capital, a move that could further strengthen its financial position.
Reliance Infrastructure’s recent performance aligns with its broader strategy to streamline its balance sheet and explore new growth opportunities. The company has also recently resolved long-standing disputes related to its Mumbai power business, further enhancing its financial outlook. The shares have gained momentum, having risen 28.5% over the past year, outperforming broader indices like the BSE Sensex.
Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Please consult a certified financial advisor for investment-related decisions.
