Reliance Infrastructure Shares Rise 5% Upper Circuit Following NCLT Sanction of Merger with Subsidiary

Mumbai, September 2, 2025 – Shares of Reliance Infrastructure Ltd (NSE: RLINFRA, BSE: 500390) rose close to 5% to reach the upper circuit of ₹278.95 on Tuesday after the National Company Law Tribunal (NCLT), Mumbai, sanctioned its merger with its wholly owned subsidiary, Reliance Velocity Limited.

The order, issued on 1 September 2025 under Sections 230 to 232 of the Companies Act, 2013, simplifies the group structure by retiring the equity capital of the subsidiary without issuing new shares.

Merger Details

The merger is intended to streamline operations, lower compliance costs, and improve corporate effectiveness. All of Reliance Velocity’s assets, liabilities, and employees will now be owned by Reliance Infrastructure and the subsidiary will be wound up and dissolved. The effective regulatory compliance date was brought forward from a previously proposed date of 31 March 2025 to the merger approval date.

Market Response – Closing Snapshot

Reliance Infrastructure’s share opened at ₹262.25 and went up strongly to reach its 5% upper circuit limit. Day’s high was ₹279.35 and the day’s low was ₹262.25. At 3:30 p.m., the share closed at ₹279.35, higher by ₹13.30 or 5.00% from the last close, with a market value of ₹11.74K crore and a P/E of 2.11. The steep rise was a sign of renewed investor confidence following the go-ahead from the tribunal for the restructuring.

Legal Relief Offers Extra Sense of Security

This regulatory triumph comes after the firm’s recent string of court reprieves. In June 2025, National Company Law Appellate Tribunal (NCLAT) granted a stay on an earlier insolvency order by the NCLT that had admitted the company to a Corporate Insolvency Resolution Process (CIRP) for a ₹90 crore debt. The NCLAT stay came after Reliance Infrastructure was reported to have paid the due amount, bringing important legal protection and support to market sentiment.

Deeper Market Context & Stock Performance

Today’s strong performance by Reliance Infrastructure is a follow-through on recent advances triggered by its reaffirmed focus on infrastructure and clean energy ventures. Diversifications into ventures like large-scale solar projects and regulatory asset recoveries in the past have helped to revive investor confidence as well.

Despite the overall trend, technical indicators continue to present a mixed picture. The company has given a 15.8% over the past year, outperforming the broader market, but declined by nearly 32% over the past month. Short-term fluctuations have been interpreted by some analysts with caution, suggesting watchfulness in tracking.

REF: https://nsearchives.nseindia.com/corporate/RELINFRA_01092025222920_RinfraSEdisMergerOrder01092025.pdf

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