 "Jai Corp, Reliance Industrial Infra rally up to 20% on heavy volumes")
Shares of Jai Corp and Reliance Industrial Infrastructure have rallied by up to 20 per cent on the BSE in Monday’s intra-day trade amid heavy volumes after the Bharatiya Janta Party (BJP) and its allies (Mahayuti) won in 235 assembly seats to retain power in Maharashtra while MVA was restricted to just 50 seats.
Shares of Jai Corp has surged 20 per cent to Rs 356.85 on the back of an over seven-fold rise in average trading volumes. At 02:30 PM, the stock was trading 19 per cent higher at Rs 354, as compared to the 1.1 per cent rise in the BSE Sensex. A combined 5.23 million equity shares have changed hands on the NSE and BSE. The stock had hit a 52-week high of Rs 438 on July 2, 2024.
Meanwhile, shares of RIIL, the Anil Ambani-led Reliance Group company, has surged 17 per cent to Rs 1,210 on the BSE in intra-day trade. The average trading volumes on the counter jumped eight fold. A combined 2.17 million equity shares changed hands on the NSE and BSE. The stock of the logistics solution provider had hit a 52-week high of Rs 1,604 on January 12, 2024.
RIIL is presently engaged in the business of providing infrastructural facilities and support services, including transportation of petroleum products and raw water through pipelines, operating construction machinery on hire and other support services.
The resurgence in performance of the BJP in assembly elections after failing to secure a majority in Lok Sabha elections should help assuage investor concerns about the government’s policy priorities and development agenda. On an immediate basis, analysts at Elara Capital see an improvement in Government of India’s (GOI) capex spending momentum and order inflow in sectors such as railways and defence.
Jai Corp is a stakeholder in Navi Mumbai IIA Private Limited (NMIIA), Mumbai SEZ Limited (MSEZ), Rewas Ports Limited (RPL) and the real estate sector.
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Jai Corp, in its FY24 annual report, had said that the Maharashtra government had, in its Industrial Policy of 2013, allowed SEZs to exit and move towards being developed as an Integrated Industrial Area (IIA), subject to certain terms and conditions. NMIIA had received approval from the commerce ministry to denotify its SEZ and accordingly all its SEZ have been denotified. "Approval from the Maharashtra government to develop the project as an IIA has been received. The Project parameters will not change, and now even local Industries will be able to set up units in IIA. NMSEZ is in the process of taking required consents and approvals from GoM / CIDCO in this regard," the company said.
MSEZ has acquired land in Uran, Pen and Panvel areas in the state of Maharashtra. So far, consent awards and sale deeds have been executed for around 4,600 acres. The subject land is not contiguous. The Land Acquisition Act which has been notified in January 2014, makes it difficult to buy land for contiguity. MSEZ is in discussion with GoM on the way forward, Jai Corp had added.
RPL, meanwhile, has signed the lease deed with Maharashtra Maritime Board (MMB) for 839 hectares (Ha) of inter-tidal land. The Government land of about 167 hectares has been transferred by the GoM to MMB. MMB will sign the lease deed for the same at the time of financial closure. "RPL has been in discussions with Indian Railways and GoM to firm up the rail and road connectivity of the port with the hinterland. RPL has been persistently working to resolve the key issue related to right of way from Mumbai Port Trust, but progress is slow. Unless this issue is resolved the Project is unable to progress," the company said.