Vijay Kedia’s portfolio gains Rs 7,16,00,000 from this Reliance Group Infra Stock; Company incorporates 4 subsidiaries in just 10 days!

The stock’s 52-week high is Rs 308 and its 52-week low is Rs 134.85.

On Monday, the stock market ended the day in red with BSE Sensex Index down by 0.27 per cent and NSE Nifty-50 Index down by 0.13 per cent. Though the market was in red, shares of Reliance Infrastructure Ltd gained 17.90 points or 10.67 per cent to Rs 185.65 per share from its previous closing of Rs 167.75 with an intraday high of Rs 192.15 and an intraday low of Rs 172.80. The stock’s 52-week high is Rs 308 and its 52-week low is Rs 134.85. The shares of the company saw a spurt in volume by more than 3 times on BSE.

An ace investor, Vijay Kedia thought his owned company Kedia Securities Pvt Ltd bought 40,00,000 shares or 1.01 per cent stake in the company as of March 2024. Therefore, 40,00,000 shares x Rs 17.90 per share = Rs 7,16,00,000 in just 1 day.

NEW SUBSIDIARIES UPDATE

1) Reliance Infrastructure Ltd.’s wholly-owned subsidiary Reliance Energy Limited (REL) incorporated a new wholly-owned subsidiary named Reliance Risee Private Limited (RRPL). RRPL's authorized and paid-up share capital is Rs 1,00,000 consisting of 10,000 equity shares of Rs 10 per share. Since it's a new subsidiary, it has no turnover or business operations as of yet. The main objective of RRPL is to act as advisors and consultants on various matters related to engineering, technology, and commodities. They will also be authorized to deal in all kinds of commodities and their derivatives. The incorporation of RRPL is not considered a related party transaction and does not require any governmental approvals for completion.

2) REL has also incorporated another wholly-owned subsidiary, Reliance Jai Private Limited (RJPL). Similar to RRPL, RJPL's authorized and paid-up share capital is also Rs 1,00,000 with 10,000 equity shares of Rs 10 per share. As a new subsidiary, it has no past financial history or ongoing operations. RJPL's focus will be on the infrastructure sector, dealing in and manufacturing various infrastructure-related products. Their areas of operation include power generation stations, telecommunication network services, and other diverse products and services. Similar to RRPL, incorporating RJPL is not considered a related party transaction and doesn't require any government approvals.

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3) Reliance Industries Limited (RIL), through its wholly-owned subsidiary Reliance Velocity Limited (RVL), incorporated a new subsidiary named Reliance EV Private Limited (REVPL) on June 6, 2024. REVPL is yet to begin its business operations and has an authorized share capital of Rs. 1,00,000 divided into 10,000 equity shares of Rs. 10 each. Notably, the incorporation of REVPL is entirely funded by cash and does not involve any share swap. RVL holds a 100% stake in REVPL.

4) Similarly, on May 31, 2024, another subsidiary of RIL, Reliance Energy Limited (REL), incorporated a new wholly-owned subsidiary named Reliance Unlimit Private Limited (RUPL). RUPL also has a share capital of Rs. 1,00,000 divided into 10,000 equity shares of Rs. 10 each. Similar to REVPL, RUPL is yet to commence its operations and its incorporation was funded entirely by cash. Here too, REL holds a complete 100% stake in RUPL

About Reliance Infrastructure Ltd

Reliance Infrastructure Ltd is a major Indian infrastructure company with a presence across several sectors. They develop projects through special-purpose vehicles, and their work spans power generation, transmission, distribution, and trading. They're also involved in building and operating roads, metro systems, airports and even have a defence subsidiary. Notably, they're the largest concessionaire under India's National Highways Authority, and their engineering and construction arm provides turnkey solutions for power plants.

The company has a market cap of Rs 7,350 crore and reported a mixed set of numbers in its Quarterly Results (Q4FY24) and annual results (FY24). The stock is up by 20 per cent from its 52-week low of Rs 132.50 per share. The promoters of the company own 16.50 per cent, FIIs own 11.77 per cent, DIIs own 2.16 per cent, the Government own 0.02 per cent and the public & others own the rest of the stake i.e., 69.55 per cent as of March 2024.

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Disclaimer: The article is for informational purposes only and not investment advice.