The Reliance Infrastructure share price has hit a roadblock during the last four sessions. The midcap stock has been falling after Anil Ambani-owned Reliance Communications decided to opt for insolvency proceedings last week following its failure to sell assets for paying back its lenders. Reliance Infrastructure also reported its Q3 earnings yesterday which failed to arrest the fall in the stock.
The stock has fallen 44.04% during the last four days. It touched a fresh 52-week low of 141.75, down 37.61% on the BSE in trade today. The Reliance Infrastructure stock has lost 65.12% during the last one year and fallen 53.25% since the beginning of this year.
The stock is trading below its 50-day and 200-day moving averages of 291.22 and 348.65 levels, respectively.
The Reliance Infra stock lost 14.87% on Monday after board of directors of Reliance Communications on Friday reviewed the progress of the company's debt resolution plans since the invocation of strategic debt resolution on June 2, 2017. The Reliance Communications stock plummeted 34.91 per cent to close at Rs 7.55 on the same day.
The board meeting led to the conclusion that despite the passage of over 18 months, lenders received zero proceeds from the proposed asset monetisation plans, and the overall debt resolution process was yet to make any headway.
It is estimated that RCom has been reeling under debt of over Rs 46,000 crore.
Reliance Communications' decision to opt for insolvency proceedings coupled with Q3 earnings announcement has led the stock head South for the last four days.
The infrastructure firm logged a 7.92 per cent rise in consolidated net profit to Rs 325.26 crore for the December 2018 quarter. It had reported a net profit of Rs 301.38 crore during the corresponding period of the previous fiscal.
Income from operations rose to Rs 4,115.72 crore during the third quarter, compared with Rs 4,090.67 crore in the year-ago period, Reliance Infrastructure said.
Meanwhile, the Sensex was trading 354 points higher at 36,971 level. The Nifty rose 121 points to 11,055 in afternoon trade today.
Edited by Aseem Thapliyal