Stocks of Anil Ambani-run Reliance Group companies bounced back
strongly on Wednesday, with Reliance Infrastructure Ltd surging as much
as 25% after the company said it has bagged Rs 7,000 croreVersova-Bandra
Sea Link project contract from Maharashtra State Road Development
Corporation (MSRDC) in Mumbai.
The rally in Reliance Infrastructure pushed up other stocks of
the group, too. Reliance Capital climbed as much as 17.8%, Reliance
Power gained 14%, Reliance Home Finance was up 10%, Reliance Naval and
Engineering shot up 8.8% while Reliance Communications rose 4%.
The Versova-Bandra Sea Link is a marquee project with a length of
17.17 km, which is three times the length of the Bandra-Worli Sea Link
of 5.6 km. Reliance Infrastructure said it is fully geared to deliver
the project in 60 months from the appointed date of 24 June 2019 as per
The Reliance Group stocks have had a tough run in the last few
weeks. Reliance Infrastructure reported a consolidated net loss of Rs
3,301 crore in the March quarter, its biggest ever loss. Last week,
ratings agency India Ratings also downgraded its long-term issuer rating
to ‘D – Issuer Not Cooperating’.
Meanwhile, PwC had resigned as the statutory auditor of Reliance
Capital and Reliance Home Finance citing ‘certain observations’ during
its ongoing assessment of FY18-19. PwC had said that Reliance Capital
disputed the observations highlighted by the audit firm and did not
convene an audit committee meeting within the expected time. The
companies, however, denied any wrongdoing.
Last week, Reliance Capital said it has repaid Rs 875 crore of
outstanding commercial paper in the last two months, and that it will
repay the balance Rs 75 crore by its maturity date.
“ICRA had revised the ratings on our Short-Term Debt Programme
(CPs) of Rs 950 crore to A4 on April 26. The ICRA rating will thereupon
stand terminated,” it said in a regulatory filing on Friday.