Reliance Infrastructure fell 2.55% to Rs 620.70 at 15:24 IST on BSE after the company said it terminated the concession agreement for the Mumbai Metro Line 2 project estimated to be about Rs 12000 crore.
The announcement was made during trading hours today, 13 November 2014.
Meanwhile, the BSE Sensex was down 58.68 points, or 0.21%, to 27,950.22.
On BSE, so far 3.44 lakh shares were traded in the counter, compared with an average volume of 3.42 lakh shares in the past one quarter.
The stock hit a high of Rs 644.35 and a low of Rs 616 so far during the day. The stock hit a 52-week high of Rs 820 on 10 June 2014. The stock hit a 52-week low of Rs 350.85 on 5 February 2014.
The stock had outperformed the market over the past one month till 12 November 2014, rising 9.28% compared with 6.51% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, falling 12.25% as against Sensex's 8.22% rise.
More From This Section
The large-cap company has an equity capital of Rs 262.99 crore. Face value per share is Rs 10.
Mumbai Metro Transport (MMTPL) wherein Reliance Infrastructure (RInfra) holds 48% of the equity and the Government of Maharashtra have executed a termination agreement to terminate the concession agreement for the Mumbai Metro Line 2 Project (Charkop - Bandra - Mankhurd corridor). The project cost was estimated to be about Rs 12000 crore, the company said in a statement.
The Government of Maharashtra through an international competitive bidding had awarded the project on 3 August 2009 to the consortium led by RInfra. The concession agreement was executed on 21 January 2010 between the Government of Maharashtra and MMTPL. Due to non-fulfillment of various critical obligations, by Government of Maharashtra / Mumbai Metropolitan Region Development Authority (MMRDA), the project could not take off. Even after 4 years, despite of the best efforts by the Government of Maharashtra, various project impediments could not be resolved, the company said.
The parties (MMTPL and Government of Maharashtra) agreed to terminate the concession agreement at no cost or claim to either party with Government of Maharashtra to return the bank guarantee (of Rs 160 crore) to MMTPL. Accordingly, the agreement to this effect has been executed between MMTPL and Government of Maharashtra.
With the above said termination of the concession agreement, all commitments, liabilities of RInfra towards the project including the commitments towards funding the project have been annulled with immediate effect, the company added.
On a consolidated basis, Reliance Infrastructure reported 1.07% rise in net profit to Rs 431.19 crore on 14.91% fall in total income to Rs 4487.08 crore in Q2 September 2014 over Q2 September 2013. The result was announced after market hours on Wednesday, 12 November 2014.
Towards the end of the Q2 September 2013, the Parent company had diluted its holding in SU Toll Road, TD Toll Road and TK Toll Road each from 100% to 49% and in the two joint ventures, BSES Rajdhani Power and BSES Yamuna Power from 49% to 28.82%. In view of above dilution, the figures of the quarter ended 30 September 2014 and half year ended 30 September 2014 are not comparable with the figures for the corresponding quarter and half year respectively, Reliance Infrastructure said.
RInfra is amongst the largest infrastructure companies, developing projects through various special purpose vehicles (SPVs) in several high growth sectors within the infrastructure space i.e. roads, metro rail and cement. RInfra is also the leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution, power trading. The company also provides engineering, procurement and construction (EPC) services for developing power and road projects.
Powered by Capital Market - Live News