Ambani Group stock active in the energy sector, development of infrastructure projects and interests in defence manufacturing hit a 5 percent upper circuit in the day’s trade following plans of setting up Dhirubhai Ambani Defence City with an investment of Rs. 10,000 Crores.
Price Action
With a market capitalization of Rs. 10,574 Crores, the shares of Reliance Infrastructure Limited hit a 5 percent upper circuit at Rs. 266.95 per equity share, from its previous day’s close price of Rs. 254.25.
What Happened
Reliance Infrastructure Limited promoted Reliance Defence Limited has announced the setting up of the largest Integrated project for the Manufacturing of Explosives, Ammunition, and Small Arms in Ratnagiri, Maharashtra, under the Dhirubhai Ambani Defence City (DADC).
The Dhirubhai Ambani Defence City will be the largest private greenfield defence project, set over 1,000 acres of land allotted in the Watad Industrial Area of Ratnagiri, Maharashtra with a Projected investment of upto Rs.10,000 Crore spread over the next 10 years.
The Ammunition will range to include Small, Medium & Large Caliber and Terminally Guided Munition (TGM). The Small Arms portfolio will address export markets in both Civil and Military applications. Over the period Reliance Infrastructure through its subsidiaries has exported defence equipment worth more than Rs. 1,000 Crores.
About Reliance Defence
Reliance has successful Joint Ventures (JVs) at MIHAN, Nagpur, Maharashtra with two of the leading Global Defence companies Dassault Aviation and Thales of France. The Dassault Reliance Aerospace Limited (DRAL) and Thales Reliance Defence Systems (TRDS) which export 100 percent of their production
Reliance Infrastructure’s wholly-owned subsidiaries Jai Armaments Limited and Reliance Defence Limited already have a license from Govt of India for manufacturing of Arms and Ammunition.
About the Company
Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. It also has interests in defence manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro and various airport developments.
Vanguard Investment
As of Q2FY25 Foreign Institutional Investor, Vanguard holds made a fresh investment into the company by purchasing a 2.25 percent stake through Vanguard Total International Stock Index Fund and Vanguard Emerging Markets Stock Index Fund, A Series.
Financials
Its Revenue from operations grew by 29.26 percent YoY from Rs. 5,565 Crores in Q1FY24 to Rs. 7,193 Crores in Q1FY25, accompanied by losses of Rs. 567 Crores to Rs. 93 Crores.
Written by Bharath KS
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