Reliance Infrastructure gained 3.04% to Rs 468.70 at 14:38 IST on BSE after the company said that it has won an arbitration award of Rs 292 crore against Government of Goa.
The announcement was made during market hours today, 26 February 2018.Meanwhile, the S&P BSE Sensex was up 318.46 points, or 0.93% to 34,460.61.
On the BSE, 2.29 lakh shares were traded in the counter so far compared with average daily volumes of 4.24 lakh shares in the past one quarter. The stock had hit a high of Rs 470.75 and low of Rs 454 so far during the day. The stock had hit a 52-week high of Rs 630 on 12 May 2017. The stock had hit a 52-week low of Rs 390.60 on 15 November 2017.
The stock had underperformed the market over the past one month till 23 February 2018, falling 12.04% compared with the Sensex's 5.53% fall. The scrip had also underperformed the market over the past one quarter gaining 1.38% as against the Sensex's 1.65% rise.
The scrip had also underperformed the market over the past one year dropping 18.43% as against the Sensex's 18.17% rise.
The large-cap company has equity capital of Rs 262.99 crore. Face value per share is Rs 10.
The arbitration tribunal, in its award on 16 February 2018, has ordered Government of Goa to pay Rs 292 crore to Reliance Infrastructure by 15 April 2018. The tribunal has also ordered payment of interest at 15% per annum on the total award amount if Government of Goa fails to pay the entire award amount by the deadline.
Joint Electricity Regulatory Commission had constituted the tribunal under the new rules laid down in 2015. Starting in January 2016, the proceedings of the tribunal were held for about two years and all pleadings and arguments by both the parties were completed in 12 sittings.
The need for arbitration arose due to prolonged non-payment of dues by the Goa Government towards supply of electricity by Reliance Infrastructure from its 48 megawatts (MW) Goa Power Plant in Sancoale.
The total outstanding dues along with interest as on 31 October 2017 amount to Rs 278 crore. The tribunal has also awarded Reliance Infrastructure interest from October 2017 till the date of the award, which amounts to Rs 14 crore.
The contention of Reliance Infrastructure that the rate of energy for the period from June 2013 to August 2014 was based on the varying prices of fuel and dollar exchange rate as was agreed to by the Goa Government, was upheld by the Tribunal.
The contention of Goa Government that the rated capacity of the plant was to be downrated, right from the second year of operation, for calculation of fixed charges since the parties had already agreed against downrating in 2007, was rejected by the tribunal.
On a consolidated basis, net profit of Reliance Infrastructure declined 19.6% to Rs 301.38 crore on 1.7% rise in net sales to Rs 5659.34 crore in Q3 December 2017 over Q3 December 2016.
Reliance Infrastructure (RInfra) is one of the largest infrastructure companies, developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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