Shares of Reliance Infrastructure Limited added 10 percent on Thursday after power and infrastructure company sold the Reliance Center, headquartered in Mumbai by Anil Ambani’s Reliance Group, to YES Bank for R200 million. A private lender will transform the building into its company headquarters, according to each report.
Following the announcement, shares of the company led by Anil Ambani increased by 9.98% to a maximum intraday of Rs 38.55 on the BSE. The stock opened higher at Rs 35.50 compared to the previous closing price of Rs 35.05 on BSE. To reduce some of the previous gains, shares of Reliance Infrastructure currently traded at Rs 38.20, an 8.89 percent increase on BSE. The company’s market snow reached Rs 1,007.25.
Shares of Reliance Infra reached a 52-week high of Rs 44.70 on May 3, 2020, and a 52-week low of Rs 10.60 on April 1, 2020.
Reliance infrastructure in exchange for Thursday exchange said all proceeds from the sale of Reliance Center, Santacruz will only be used to pay off YEB Bank debt. “Reliance Infrastructure Limited (RInfra) and YES Bank Limited (YES Bank) have announced a sale of Reliance Center, Santacruz, Mumbai to YES Bank. The transaction value is Rs.1200 crore,” it said.
The former Reliance Center, formerly a Crescent House, run by Kolkata-based ICI, was built on the land of Mumbai Port Trust. The property entered the Ambani family fold while Reliance Industries, which was not divided at the time, took over ICI businesses in the early 1990s. After the Ambani brothers split the Reliance regime among themselves in 2005, the Ballard Estate office went to Anil Ambani’s Reliance Group. Part of the Ballard Estate building was owned by the Maharashtra government department, which won a legal battle about a few years ago.
Reliance Infrastructure has sold three major assets, including this one, since January 2021. The other two include the Delhi-Agra toll road to Cube Highways and the R600 million infrastructure and 74 per cent shares of Parbati Koldam Transmission Company to India Grid Trust business value these 900 crores