Anil Ambani-led Reliance Infrastructure, has been in the spotlight after announcing a merger with its wholly-owned subsidiary, Reliance Velocity. The share price of Reliance Infrastructure saw a strong rally last week, gaining over 12% in just five days. However, in today’s trading session, it took a dip of 2% after rising for three consecutive sessions.
Let’s take a look at the details of the company’s merger move, stock market performance and other details.
Reliance Infrastructure: The big merger move
On March 8, Reliance Infrastructure’s board approved the merger with RVL. With an aim to streamline operations and enhance efficiency, the merger still needs approval from regulatory bodies, including the National Company Law Tribunal (NCLT).
The company stated in an exchange filing that the merger is part of its strategy to simplify its structure and create more value for shareholders.
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“We hereby inform that the Board of Directors, at its meeting held today, has approved the Scheme of Arrangement between the Company and its wholly owned Subsidiary, Reliance Velocity Limited (RVL) and their respective shareholders (“Scheme”) providing for amalgamation of RVL with the Company. The proposed Scheme is subject to necessary statutory compliances and requisite regulatory approvals, including approval of the Hon’ble National Company Law Tribunal, Mumbai Bench,” the company said in an exchange filing on March 8.
Reliance Infrastructure stock performance: Roller-coaster ride
Reliance Infra’s share price saw a strong 14% rally last week, but its journey over the past few months has been volatile.
Over the last one month, the stock has declined by 18%, while it has gained 8% in the past six months. On a year-to-date (YTD) basis, the share price of the company is down nearly 30%, but over the past one year, it has risen by 4%.
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Currently trading around Rs 234, the stock is 33% below its 52-week high of Rs 351 and 62% above its 52-week low of Rs 144.45. Reliance Infra’s market capitalisation stands at approximately Rs 9,280 crore.
Reliance Infrastructure Q3 earnings
Reliance Infra’s Q3 FY25 results showed a 24% drop in net profit,
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