Reliance Infrastructure shares on Friday slumped to a 15-year low of Rs 73, down 14 per cent in intra-day on BSE, and 25 per cent in the past two trading days ahead of March quarter earnings to be announced later in the day.
The stock hit a record low of Rs 35 on April 1990. The counter has seen huge trading volumes with a combined 24 million shares changed hands on the counter on the NSE and BSE till 01:19 pm.
“Due to postponement of board meeting of the Reliance Power, our Associate Company, to Friday, June 7, 2019, meeting of the board of directors of Reliance Infrastructure scheduled to be held on Thursday, May 30, 2019 is postponed and will be held on Friday, June 7, 2019,” Reliance Infrastructure had said in a regulatory filing on May 29.
Since then, the stock has tanked 34 per cent, as compared to a marginal 0.5 per cent decline in the S&P BSE Sensex. Thus far in the calendar year 2019, it has tanked 77 per cent against a 10 per cent rise in the benchmark index.
The stock has been falling after another group company Reliance Communications decided to opt for insolvency proceedings in February, following its failure to sell assets to pay back its lenders.
On February 15, Brickwork Ratings had moved the rating of Reliance Infrastructure to the “Issuer not Cooperating; BWR C” category from “BWR C” due to non-submission of required information for the review even after consistent follow up with the company.
“Financial support extended to group companies/associates in the form of loans & advances continued to remain high at around Rs 13,558 crore as on March 31, 2018 which has impacted the liquidity profile and financial risk profile of Reliance Infrastructure,” CARE Ratings said in a press release on January 9.
Reliance Capital (12 per cent at Rs 98), Reliance Home Finance (down 10 per cent at Rs 18.25), Reliance Power (8 per cent at Rs 6.02), Reliance Communications (4 per cent at Rs 1.81) and Reliance Naval and Engineering (4 per cent at Rs 7.20) were other stocks from Anil Ambani Group tanked up to 12 per cent on the BSE.