Shares of Reliance Infrastructure Limited rallied 10 per cent on Thursday after the power generation and infrastructure firm said it has sold Reliance Center, the Mumbai headquarter of Anil Ambani's Reliance Group, to YES Bank for Rs 1,200 crore. The private lenderwill convert the building as its corporate headquarters, as per report.
Following the announcement, shares of Anil Ambani-led firm rose as much as 9.98 per cent to hit intraday high of Rs 38.55 on the BSE. The stock opened higher at Rs 35.50 against previous close price of Rs 35.05 on the BSE. Paring some of early gains, Reliance Infrastructure shares were currently trading at Rs 38.20, up 8.89 per cent on the BSE. The market cap of the company surged to Rs 1,007.25.
Reliance Infra shares hit 52-week high of Rs 44.70 on May 3, 2020, and 52-week low of Rs 10.60 on April 1, 2020.
Reliance Infrastructure in an exchange filing on Thursday said that entire proceeds from sale of Reliance Centre, Santacruz will be utilised only to repay the debt of YES Bank. "Reliance Infrastructure Limited (RInfra) and YES Bank Limited (YES Bank) announced a sale transaction of Reliance Centre, Santacruz, Mumbai to YES Bank. The transaction value is Rs.1200 crore," it said.
Reliance Center, which was earlier Crescent House, owned by Kolkata-based ICI, was built on Mumbai Port Trust land. The property came into the Ambani family's fold when the then undivided Reliance Industries took over businesses of ICI in the early 1990s. After the Ambani brothers divided the Reliance empire among themselves in 2005, the Ballard Estate office went to Anil Ambani's Reliance Group. A portion of the Ballard Estate building has been occupied by the Maharashtra government's civil supplies department, which won it through legal battle about a couple of years back.
Reliance Infrastructure has sold as many as three major assets, including this one, since January 2021. The other two includes Delhi-Agra toll road to Cube Highways and Infrastructure for Rs 3,600 crore and 74 per cent equity shares in Parbati Koldam Transmission Company to India Grid Trust for an enterprise value of Rs 900 crore.
Meanwhile, YES bank shares were trading 0.64 per cent higher at Rs 15.70 on the BSE.
Edited by Chitranjan Kumar
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today