Reliance Infra share price was locked at 5 percent upper circuit on December 23 after the company won arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC).
The company won a major arbitration award of Rs 1,250 crore against Damodar Valley Corporation (DVC), a Government of India undertaking. A three-member arbitration tribunal unanimously gave the award in favour of company.
The company was the engineering & construction contractor for Damodar Valley Corporation’s 2 x 600 MW Raghunathpur thermal power project in West Bengal commissioned in 2012.
The arbitration tribunal directed Damodar Valley Corporation to pay Rs 896 crore and return the bank guarantees of Rs 354 crore within four weeks or pay additional interest, at the rate of 15 percent per annum, for any delay in payment beyond four weeks.
The company will request DVC to pay 75 percent of the Arbitral Award against Bank Guarantee immediately and proceeds will be used to pay lenders and reduce the debt of the company.
There were pending buy orders of 176,062 shares, with no sellers available.
At 10:42 hrs, Reliance Infrastructure was quoting at Rs 24.25, up Rs 1.15 on the BSE.
News Source: Moneycontrol