Anil Ambani (Chief, Reliance Infrastructure) announced at Tuesday’s company’s annual meeting that Reliance Infrastructure had won against Delhi Metro Rail Corporation. The Supreme Court upheld an arbitral award in favor of Delhi Airport Metro Express Private Limited. (DAMEPL), which is a Reliance Infra unit that used to operate Delhi Airport Metro.
Ambani stated that Reliance Infra’s arm DAMEPL will be receiving a sum from DMRC of Rs 7,100 crore as a result. This will be used to repay Reliance Infra’s debt. The company will then become debt-free.
He also stated that the company has regulatory assets of Rs 50,000 crore which are under approval/dispute in various fora. These include its power distribution business – BSES Delhi, and an earlier GTD in Mumbai. Additional arbitration claims are pending before different fora and amount to Rs 15,000 Crore.
Anil Ambani, the promoter of the company, had stated at the last AGM that they would be increasing their shareholding. The promoters will be able to increase their holding to 22.06 percent by issuing a preferential issue worth more than Rs 550 crore, which includes 8.88 crore warrants valued at Rs 62 each that can be converted into equity.
Reliance Power, Reliance Infra, and other promoters have increased their stake by converting Rs 1 325 crore ICD. The current holdings are 24.98%, but will rise to 38.9% upon conversion of warrants.
Ambani stated that Reliance Infra completed a 100% stake sale of Delhi Agra Toll Road and Cube Highways and Infrastructure III Pte Ltd worth Rs 3,600 crore. The entire 74% stake sale in Parbatikoldam Transmission Company Limited, India Grid Trust, for an enterprise value of Rs 990 crore, and the sale of Santacruz’s commercial property under a combined transaction for the sale, buyback, and lease of said property, resulting in a 35% reduction in debt.
Ambani stated that Reliance Infra will be its new growth engine. The new Electricity Act will open up many opportunities, including new contracts in EPC and defense manufacturing.