Reliance Infrastructure share price hits 52-week high logging 13% intraday gain; NCLAT suspends NCLT order

Mumbai, June 4, 2025 — Shares of Reliance Infrastructure Ltd (RInfra) soared over 13% intraday on Wednesday, touching a 52-week high, after the National Company Law Appellate Tribunal (NCLAT) suspended an earlier NCLT order that had sparked concerns among investors. The development has significantly boosted market sentiment surrounding the Anil Ambani-led infrastructure conglomerate.

NCLAT’s Relief Fuels Investor Optimism

The National Company Law Tribunal (NCLT) had earlier issued a directive admitting an insolvency petition filed by IDBI Bank against RInfra, leading to panic among stakeholders and a sharp correction in the company's stock. However, in a major relief, the appellate body NCLAT stayed the insolvency proceedings, citing procedural irregularities and allowing RInfra time to present its case.

Legal experts believe this stay could offer RInfra a vital breathing space to resolve matters outside the bankruptcy process.

“The NCLAT’s decision restores confidence in the company’s ability to handle its obligations and restructure liabilities without undergoing insolvency,” said Aditi Mehra, Senior Counsel at Mehra & Associates. “It is also a reaffirmation of the need for due process before any drastic measures are undertaken.”

Stock Performance and Market Response

Following the news, RInfra’s stock jumped from ₹157 to ₹177.50 on the Bombay Stock Exchange, marking a 13% intraday rally, its highest level in the last 12 months. By closing bell, the stock had settled at ₹173.80, up 11.2%, with over 12 million shares traded, significantly higher than its daily average volume.

Broader indices also saw marginal gains, with the BSE Capital Goods index rising by 1.4%, indicating improved sentiment in the infrastructure and utilities sector.

“The legal clarity provided by the NCLAT has lifted a major overhang for Reliance Infrastructure,” said Rajiv Sharma, Head of Research at Locus Capital. “Given the company’s ongoing projects and recent fundraising efforts, the market is betting on a successful turnaround.”

Company’s Strategic Position

Reliance Infrastructure, a key player in engineering, procurement, construction (EPC), and urban infrastructure, has been working to deleverage its balance sheet and attract new investments. In recent months, it secured orders in power distribution and transport, signaling operational momentum despite legal challenges.

In a brief statement post the NCLAT order, a company spokesperson said, “We welcome the Hon'ble NCLAT’s stay order. Reliance Infrastructure remains committed to resolving issues amicably and delivering value to all stakeholders.”

RInfra also continues to hold stakes in Reliance Power and other subsidiaries, which could be monetized if needed for debt servicing or strategic investments.

Analyst View: Risk Remains, But Path Clearing

While the share price surge reflects a renewed sense of optimism, analysts caution that fundamental risks still persist. The company continues to carry a significant debt load, and operational cash flows remain under pressure.

“Today’s gain is sentiment-driven. Long-term stability will depend on the company’s ability to service debt, execute projects, and secure new business,” noted Suresh Patil, Analyst at Motilal Oswal Financial Services. “We maintain a ‘Hold’ rating until further clarity emerges on earnings and liability resolution.”

Investor Outlook: Watch for Volatility

For investors, this is a crucial juncture. While the short-term relief may provide speculative opportunities, long-term gains will depend on sustained performance and strategic execution.

Key factors to monitor include:

• Final outcome of the insolvency case

• New project announcements

• Quarterly financials

• Debt reduction roadmap

“The legal relief is undoubtedly positive, but investors should brace for volatility,” said Neha Agarwal, a retail investor and financial blogger. “It's a momentum play for now, not yet a conviction story.”

The NCLAT’s suspension of the insolvency proceedings against Reliance Infrastructure has acted as a powerful catalyst for a sharp rally in its stock price. While challenges persist, the development marks a significant turn in sentiment and opens a new window for the company to reposition itself both legally and operationally.

As markets digest the implications, Reliance Infrastructure will remain a closely watched stock in the infrastructure space — for better or worse.