Anil Ambani-backed multibagger debt-free stock jumps after winning arbitration award of Rs 526 crore against Aravali Power Company Pvt Ltd

On Thursday, shares of Reliance Group & Anil Ambani-backed infra stock – Reliance Infrastructure Ltd jumped 3.7 per cent to Rs 267 per share from its previous closing of Rs 257.55 per share. The stock’s 52-week high is Rs 425 and its 52-week low is Rs 195.

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Reliance Infrastructure Limited has won an arbitration award of approximately Rs 526 crore against Aravali Power Company Private Limited (APCPL). The company had initiated arbitration in 2018 following the wrongful termination of a contract by APCPL. A three-member arbitral tribunal, by a majority decision, deemed the termination illegal, invalid, and wrongful, consequently awarding damages and costs in favour of Reliance Infrastructure. The proceeds from this award will be utilized by Reliance Infrastructure to fund its growth initiatives.

Reliance Infrastructure is a prominent infrastructure company, actively developing projects across high-growth sectors, including Power, Roads, and Metro Rail through various Special Purpose Vehicles (SPVs), in addition to its presence in the Defence sector. The company is a key provider of Engineering and Construction (E&C) services for power, infrastructure, metro, and road projects, with a portfolio that includes a Mumbai metro rail project on a Build, Own, Operate, and Transfer (BOOT) basis and road projects on a Build, Operate, and Transfer (BOT) basis. The favourable arbitral award, dated August 12, 2025, specifically amounts to Rs 526.23 crore along with interest.

About the Company

Reliance Group has two prominent companies under its umbrella, Reliance Infrastructure Limited and Reliance Power Limited, which are debt-free with zero outstanding loans from banks or financial institutions. The group's financial strength is reflected in its net worth and annual turnover, each amounting to Rs 33,000 crore, and market capitalisation around Rs 45,000 crore, with a shareholder base exceeding 4 million. Reliance Infrastructure Limited is active in the energy sector, focusing on power distribution in Delhi and power generation. The company 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. Reliance Power, a leading power generation company in India with a total installed capacity of 5,305 MW, includes the 4,000 MW Ultra Mega Power Project in Sasan, Madhya Pradesh, currently the largest integrated thermal power plant in the world.

The company has a market cap of over Rs 10,000 crore. The stock is up 37 per cent from its 52-week low of Rs 195 per share. The promoters of the company own 19.05 per cent, FIIs own 10.26 per cent, DIIs own 1.38 per cent, the Government own 0.01 per cent and the public & others own the rest of the stake, i.e., 69.30 per cent as of March 2025.

Disclaimer: The article is for informational purposes only and not investment advice.