Reliance Infra up 6% after arbitration claim against Adani Transmission

The Reliance Infrastructure share rose 5.88% to ₹172 today after the company filed an arbitration claim against Adani Transmission. Anil Ambani-led Reliance Infrastructure (R-Infra) has filed an international arbitration claim worth ₹13,400 crore against Adani Transmission Ltd., before the Mumbai Centre for International Arbitration. The arbitration claim has been filed in relation to disputes on the breach of the terms of the share purchase agreement dated December 21, 2017. Adani Transmission had acquired Reliance's power business in the year 2017 for Rs 18,800 crore.

"In relation to disputes with regard to breach of the terms of the share purchase agreement dated 21st December 2017 relating to the transfer of Mumbai Power Business to Adani Transmission Limited, the company has filed its statement of arbitration claims for a sum of approx. Rupees one hundred and thirty-four billion before the Mumbai Centre for International Arbitration. The financial implication cannot be ascertained and is contingent upon the final outcome of the arbitration and subsequent legal challenges," Reliance Instructure says in an exchange filing.

The stock opened a 2.8% gap-up at ₹167 to rise up to the intra-day high of ₹173.75. It outperformed the sector by 5.91%, shows Markets Mojo data, but more volume traded close to the low price. The stock is currently trading at higher than 20-day, 50-day, 100-day and 200-day moving averages but lower than 5-day moving averages. The benchmark BSE has also opened in green (0.69% up) at ₹60,210, while the Nifty has risen 0.68% to ₹17,952.80.

Meanwhile, Thomas Mathew has resigned as an independent director of Reliance Infrastructure as unable to continue to serve on the board of the company due to other preoccupations and commitment to complete some time-bound responsibilities.

Adani Transmission has not responded to Reliance Infrastructure's arbitration claims so far. The Adani Transmission stock is trading higher than the 5-day, 20-day, 50-day, 100-day and 200-day moving averages. The Adani Transmission stock is down 0.31% at ₹3,925. The stock is 3.18% away from its 52-week high of ₹4,041.9.

Adani Transmission last month hit the market capitalisation of ₹4 lakh crore for the first time amid a continuous rally in its shares. The stock has risen 72.82% in the past six months and 126.45% in the year-to-date period.

Reliance Infra had reported a net consolidated loss of ₹66.11 crore for the April-June quarter of 2022 as compared to ₹95.15 crore in the corresponding period of the previous fiscal. The total revenue rose to ₹6,349.34 crore as compared to ₹4,623.17 crore during the same period last year. Its expenditure also rose to ₹6,714.42 crore, vs ₹5,208.75 crore earlier.