Reliance Infrastructure Sees 20 Per Cent Plunge In Share Prices After SC Ruling

The firm's shares settled at Rs 227.40 on the BSE, slipping 19.99 per cent to its lower circuit limit, while on the NSE it plunged 20 per cent to hit the lowest trading permissible limit of Rs 227.60

Issuing a clarification, Reliance Infrastructure said that no liability has been imposed on the firm and the company also didn’t receive any funds from either of the entities involved. 

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Reliance Infrastructure saw a major decline in its share prices on Wednesday after the Supreme Court judgement in favour of the Delhi Metro Rail Corporation (DMRC). The shares of the infrastructure company tanked 20 per cent after the apex court said that the DMRC was not liable to pay more than Rs 8,000 crore to the Delhi Airport Metro Express Pvt Ltd. (DAMEL).

The company’s shares settled at Rs 227.40 on the BSE, slipping 19.99 per cent to its lower circuit limit, while the stock price on the NSE plunged 20 per cent to hit the lowest trading permissible limit of Rs 227.60 as markets closed. Reliance Infrastructure’s market capitalisation also decreased by Rs 2,250.02 crore to Rs 9,008.02 crore, reported PTI. 

Notably, a special bench of the Supreme Court, headed by Chief Justice D YChandrachud, overturned the prior judgement and said that the apex court made a mistake in setting aside the verdict passed by the Delhi High Court. The bench also included justices B R Gavai and Surya Kant.

The ruling was concerning a 2017 arbitral award, which made the DMRC liable to pay over Rs 8,000 crore to the DAMEL. The latter is a subsidiary unit of Reliance Infrastructure.

Earlier in 2019, the Delhi High Court set aside the arbitral award passed against the DMRC. The verdict of the apex court read, “By setting aside the Delhi High Court judgement, this court (SC) restored a patently illegal award which saddled a public utility with an exorbitant liability.” 

The court further said that the funds deposited by the DMRC till now will be refunded and also restored both entities to the position in which they were when the Delhi High Court announced its verdict.

Issuing a clarification, Reliance Infrastructure said that no liability has been imposed on the firm and the company also didn’t receive any funds from either of the entities involved.