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RInfra gains after withdrawing from Delhi airport metro express project

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Capital Market
Last Updated : Jul 01 2013 | 11:30 AM IST

Meanwhile, the S&P BSE Sensex was up 55.98 points, or 0.29%, to 19,451.79.

On BSE, 1.63 lakh shares were traded in the counter as against an average daily volume of 7.49 lakh shares in the past one quarter.

The stock hit a high of Rs 356.70 and a low of Rs 345.20 so far during the day. The stock had hit a 52-week high of Rs 579.30 on 5 July 2012. The stock had hit a 52-week low of Rs 315 on 28 March 2013.

The stock had underperformed the market over the past one month till 28 June 2013, falling 10.38% compared with the Sensex's 3.79% fall. The scrip had, however, outperformed the market in past one quarter, rising 7.44% as against Sensex's 2.97% rise.

The large-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.

Reliance Infrastructure (RInfra) through its special purpose vehicle (SPV) Delhi Airport Metro Express (DAMEPL) has intimated the take over of the line by Delhi Metro Railway Corporation (DMRC) with effect from 1 July 2013. The announcement was made before market hours today, 1 July 2013.

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RInfra said that due to the defects in the civil structure designed and built by DMRC, DAMEPL after deliberations and consultations with all stakeholders was forced to suspend the operations of the project, with effect from 8 July 2012, in paramount interest of safety of commuters and public at large. In view of the fact that DMRC failed to cure the defects within the period prescribed under the concession agreement, and on account of material breach and DMRC Event of Default having arisen as a result thereof, DAMEPL terminated the concession agreement vide its termination notice dated 8 October 2012.

RInfra said it has requested DMRC for payment of termination payment. As per the terms of the concession agreement, for the termination due to DMRC's Event of Default, DMRC is to pay the termination payment equivalent to 130% of the adjusted equity and 100% of the debt-due. The total investment of RInfra towards project capital expenditure is to the tune of Rs 2800 crore, RInfra said.

Reliance Infrastructure's consolidated net profit surged 76.4% to Rs 725 crore on 13.29% fall in total operating income to Rs 6187 crore in Q4 March 2013 over Q4 March 2012.

Reliance Infrastructure is India's leading utility company having presence across the value chain of power business i.e. generation, transmission, distribution, EPC and trading. The company also undertakes infrastructure sector projects i.e. roads, highways, metro rail, airports and real estate.

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First Published: Jul 01 2013 | 10:37 AM IST

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