Reliance Infra rallies 6% as CRISIL changes ratings for NCDs

Shares of Reliance Infrastructure have moved 6% higher to Rs 479 on the BSE, after the company said the rating agency Crisil withdrawn its ‘D’ rating for non-convertible debentures (NCDs) worth of Rs 7.10 billion.

The company has repaid the NCDs from the funds received from the sale of Integrated Mumbai Distribution Business to Adani Transmission. The company had informed the NCD holders that they would be paid out of the proceeds of the transaction.

Earlier, Brickwork Ratings (BWR) had withdrawn its ‘D’ rating for the NCDs amounting to Rs 4.19 billion and BWR C for the NCD amounting to Rs 500 million of Reliance Infrastructure.

On August 29, the company had said that it had completed a transformational transaction of sale of its Mumbai Power Business and entire proceeds were used to pay off above mentioned debt and NCDs.

Reliance Infra chairman, Anil D Ambani, recently said that he expects top-end ratings for the company with the closure of the deal for the Integrated Mumbai Distribution Business and drastic fall in debt liabilities.

Meanwhile, Reliance Infra on Tuesday announced that the company - Astaldi S.p.A (Italy) Consortium signed an agreement with Maharashtra State Road Development Corporation (MSRDC) for construction of prestigious Versova-Bandra Sea Link Project in Mumbai.

Reliance Infra-Astaldi had earlier bagged the engineering, procurement and construction (EPC) contract for the Rs 70 billion project on a competitive bid basis.

In past eight trading sessions, the stock has outperformed the market by surging 17% from Rs 410 on August 24. In comparison, the S&P BSE Sensex has lost 0.81% during the same period.