The Hindu Business Line : Reliance Industrial Infra makes steady gains

RELIANCE Industrial Infrastructure Ltd, which carries the lowest profile among all listed entities in the Reliance group, has lately been a quiet performer on the bourses.

The RIIL counter has been creeping up ever since the market started homing in on infrastructure-related companies; its movement has started attracting more investors in the backdrop of the latest developments concerning the country's No. 1 conglomerate.

The stock over the past few days provided investors with an opportunity to take home profits ever since it reached an annual high of Rs 156.70. It closed at Rs 140.85 on the NSE on Thursday after having opened the day's session at Rs 137.10. The closing price represents a three-fold increase from its 52-week low of Rs 47.55.

RIIL, according to investors, is now poised for further gains based on the market's positive outlook on Reliance group stocks. The latter, especially Reliance Industries and Reliance Capital, have already recorded some advances following the formal split between the two Ambani brothers, Mukesh and Anil.

On the BSE, the counter ended at Rs 138 after peaking to Rs 144.45 and a total of 1,45,106 shares were traded.

"This is a company that is usually associated with the Reliance pack as an afterthought. In terms of profile it stands nowhere close to Reliance, Reliance Energy (BSES to old-timers) or even Reliance Capital," said a source with a broking house.

Reliance Industries, which holds 46.23 per cent in RIIL (as on March 31, 2005), happens to be the company's largest stakeholder, while 1.06 per cent is held by Reliance Capital. The latter, along with a few other entities, figures among `persons acting in concert'. In all, as much as 50.22 per cent is controlled by private corporate bodies; the Indian public holds 29.28 per cent of the company.

Among the recent developments concerning the RIIL management is the announcement that the company's board has maintained a 32-per cent dividend on a paid-up base of Rs 15.1 crore.

Sources, while referring to the average trading volumes, point out that there is ample liquidity in the counter. This is an offshoot of the interest displayed by the market in RIIL on a sustained basis, it is felt.

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