Reliance Infra Share Price Dips After 3-Day Rally Amid Merger Announcement

Reliance Infrastructure share price declined nearly 2% on March 10, ending their 3-day winning streak. The stock, part of the Anil Ambani Group, dropped to a low of ₹235 on the BSE, after opening at ₹240.70 and touching a high of ₹243.75.

Amalgamation with Subsidiary

On March 8, Reliance Infrastructure’s board approved the merger of its wholly-owned subsidiary, Reliance Velocity Limited (RVL), with itself. This move is aimed at simplifying the company’s structure, improving operational efficiency, and reducing costs. The National Company Law Tribunal (NCLT) still needs to approve the merger.

RVL provides support services for transport systems and infrastructure projects. The merger will not affect Reliance Infra’s shareholding pattern.

Recent Rally and Settlement with J&K Bank

Before today’s dip, the stock had gained over 15% in 3 sessions. The rally was fueled by Reliance Infra’s announcement on March 4 that it had settled its ₹90.50 crore debt with Jammu and Kashmir Bank through a one-time settlement. The company confirmed that it had cleared all obligations related to the debt.

Stock Performance

Despite today’s decline, Reliance Infra’s stock has gained 7% over the past year and 12% in the last 6 months.

Conclusion

Despite today’s decline, Reliance Infra remains on an upward trend, gaining 7% over the past year. The merger aims to boost efficiency, with NCLT approval awaited.

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