Reliance Infrastructure Share Price Hits 5% Lower Circuit Despite ₹526 Crore Arbitration Win

Reliance Infrastructure Share Price Hits 5% Lower Circuit Despite ₹526 Crore Arbitration Win

Market Performance

Shares of Reliance Infrastructure were locked in the 5% lower circuit on Wednesday, August 13, 2025. The stock closed at ₹257.55, continuing its downward trend for the second consecutive day.

  • Overall losses in August: Nearly 22%
  • Circuit trigger: 5% fall from previous closing

Despite a favorable arbitration award of ₹526 crore, the market sentiment remained subdued, keeping the stock under pressure.

Main News

Reliance Infrastructure secured a major arbitration win against Aravali Power Company Private Limited (APCPL).

Key highlights of the arbitration award:

  • Contract termination by APCPL in 2018 declared illegal and invalid
  • Awarded sum: ₹526.23 crore, plus interest
  • Tribunal partly allowed Reliance Infrastructure’s claims for damages and costs

The company announced that the proceeds from the award will be used to strengthen financial position and support growth initiatives.

Despite this positive development, external regulatory issues continue to weigh on the stock.

Company Details

Reliance Infrastructure, part of the Anil Dhirubhai Ambani Group (ADAG), has been in the spotlight due to regulatory scrutiny:

  • SEBI Settlement Rejection: A proposal from Anil Ambani regarding charges linked to YES Bank investments was turned down
  • Potential Penalty: $208.40 million risk for the industrialist
  • ED Investigation: In July, locations linked to the group were searched in a ₹3,000 crore loan diversion case

These events have kept Reliance Infrastructure share price under sustained pressure, overshadowing the recent arbitration win.

Summary

  • Stock locked in 5% lower circuit at ₹257.55
  • Arbitration award: ₹526.23 crore plus interest against APCPL
  • Market pressure due to SEBI and ED actions related to YES Bank
  • August losses: Nearly 22%

While the arbitration win is a significant financial gain, ongoing regulatory concerns continue to dominate investor sentiment, affecting Reliance Infrastructure share price.

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