Reliance Infra Share Price Gains Despite Market Crash

Market Performance

On Friday, Reliance Infra share price defied the broader market trend by trading higher, even as the Indian stock market faced significant pressure.

• Sensex dropped nearly 600 points
• Nifty 50 slipped below the crucial 24,500 mark
• Despite the fall, Reliance Infra share price surged by 3.1%, reaching an intraday high of ₹290.70 on the BSE

At 12:00 PM, Reliance Infra share price was trading 0.04% higher at ₹282.05, showing resilience amidst widespread market volatility.

Main News: Supreme Court Boosts Regulatory Recovery

The uptick in Reliance Infra share price follows a significant legal development concerning its power distribution subsidiaries, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd.

• The Supreme Court of India, on August 6, approved the recovery of ₹21,413 crore in regulatory assets
• This amount will be recovered over a four-year period, providing a clear roadmap for revenue realization

The apex court’s decision brings much-needed clarity to the long-standing issue of non-cost-reflective tariffs and deferred revenue in Delhi's electricity sector.

Company Details

Supreme Court Verdict Details:

• The Supreme Court ordered the payment of ₹27,200.37 crore in regulatory assets (including carrying costs) to Delhi’s private DISCOMs
• Breakup of regulatory assets (as of March 31, 2024):
  • ₹12,993.53 crore – BSES Rajdhani Power Ltd
  • ₹8,419.14 crore – BSES Yamuna Power Ltd
  • ₹5,787.70 crore – Tata Power Delhi Distribution Ltd

Key Legal Developments:

• The court disposed of writ petitions and appeals filed by BSES companies dating back to 2014
• Issued 10 “sutras” (guiding principles) and 9 binding directions to electricity regulators and the Appellate Tribunal for Electricity (APTEL)
• Mandated that existing regulatory assets must be liquidated by March 2028 with active monitoring by APTEL

This legal clarity has significantly contributed to the positive movement in Reliance Infra share price, as investors anticipate smoother regulatory compliance and improved financial visibility.

Reliance Infra Share Price Performance

Despite the Friday gains, the Reliance Infrastructure share price has seen varied performance across different time frames:

• Past 1 Month: - 24%
• Past 3 Months: + 22%
• Year-to-Date (YTD): - 11%
• Past 2 Years: + 46%
• 5-Year Return: + 900% (Multibagger Performance)

These long-term gains highlight the stock's strong historical performance, despite short-term volatility.

Summary of the Article

To sum up, Reliance Infra share price showed strength on a weak trading day, primarily due to the Supreme Court's judgment allowing recovery of over ₹21,000 crore in regulatory assets. This verdict not only impacts Reliance Infrastructure but also the broader power distribution landscape in Delhi. The clarity on regulatory asset recovery and mandated timelines from the apex court have helped improve investor sentiment and support the share price.