Reliance Infra Shares Soar To Five-Month High On Debt Reduction

Shares of Reliance Infrastructure Ltd. surged nearly 8% on Wednesday after the company reported that its external debt was down to Rs 475 crore from Rs 3,831 crore earlier.

The Anil Ambani-founded company's net worth currently stands at Rs 9,041 crore, according to an exchange filing on Wednesday.

The integrated power utilities provider said it had completed a one-time settlement with Life Insurance Corporation relating to issue of debentures worth Rs 600 crore.

The company has also cleared its funded outstanding dues to Edelweiss Asset Reconstruction Co., ICICI Bank Ltd, Union Bank Ltd., and other lenders, it said.

Invent Assets Securitisation and Reconstruction Pvt., a lender to the company, replaced certain charged securities to recover its dues. "As a result, Invent ARC's entire fund-based outstanding amount has been reduced to zero."

Reliance Infrastructure's stock rose as much as 7.9% during the day to Rs 254.3 apiece on the NSE, the highest level since April 10. It was trading 5.9% higher at Rs 249 apiece, compared to a 0.21% decline in the benchmark Nifty 50 as of 10:47 a.m.

It has risen 40% during the last 12 months and has advanced by 20% on a year-to-date basis. The total traded volume so far in the day stood at 4.2 times its 30-day average. The relative strength index was at 69.