Anil Ambani Led Reliance Infra Shares Jumps 5% After Deal With Dassault Aviation, Promoter Increases Stake

The stock price of Anil Ambani led Reliance Infrastructure Ltd rose as much as 5 per cent to Rs 404 in trade on Thursday, June 19, after the company announced a strategic partnership with French Aerospace major Dassault Aviation and promoter Risee Infinity Private Limited aquired an additonal stake in the firm.

In an exchange filing dated June 18, Reliance Infra informed that its promoters have acquired an additional 12,500,000 equity shares, which is a 2.55 per cent stake in the Anil Ambani-led company by way of conversion of warrants.

The counter has given a multibagger return of 155 per cent in two years and 305 per cent in three years. The stock has shown a positive return of 84 per cent in one year.

Expert Take On Reliance Infra Shares

Osho Krishan, Chief Manager for Technical and Derivative Research at Angel One, said, "Reliance Infrastructure has demonstrated a substantial upward movement, ascending from the breakout zone of 280 to achieve new 52-week highs. However, recent trends indicate that this momentum may be dissipating as the stock has entered overbought territory. Consequently, the potential for profit-taking should not be disregarded."

"Regarding price levels, support is anticipated in the range of 360 to 355 (20-day exponential moving average), which may provide a buffer against any potential declines. Nonetheless, a correction that exceeds this threshold could result in further downward pressure on the stock. It is advisable to adjust stop-loss orders as long as momentum persists and to remain vigilant regarding emerging developments in the market."

What's Fueling Reliance Infra's Rally?

The stock has been gaining for the last two days and has risen over 6.11 per cent in this period. The rally in the counter started after the company informed exchanges that it has signed a deal with French aerospace major Dassault Aviation to manufacture Falcon 2000 business executive jets in India for the global markets.

The announcement, made at the Paris Air Show, holds significance as this is the first instance of Falcon 2000 jets being produced outside of France. As part of the partnership, a final assembly line for the Falcon 2000 jets will be set up in Nagpur, Maharashtra.

When the Nagpur facility starts, India will join the elite club of countries producing business jets after the United States, France, Canada and Brazil.

"Dassault Aviation and Reliance Infrastructure subsidiary, Reliance Aerostructure Limited (RAL) today at the Paris Air Show announced a landmark strategic partnership to manufacture Falcon 2000 business executive jets in India for the global markets," the company said in an official statement.

DRAL: Joint Venture Between Dassault Aviation & Reliance Aerostructure

The joint venture between Dassault Aviation and Reliance Aerostructure (DRAL) was established in 2017. The operations commenced with the setting up of a state-of-the-art manufacturing facility at Mihan, Nagpur, later that year.