Market Update – March 4, 2025
Reliance Industries Limited (RIL) shares extended their decline for the third straight session on March 4, slipping closer to their 52-week low. The decline follows the Ministry of Petroleum and Natural Gas raising a demand of $2.81 billion related to an ongoing gas extraction dispute.
Background of the Dispute
The demand involves Production Sharing Contract (PSC) partners, which include:
- Reliance Industries Limited (RIL)
- BP Exploration (Alpha) Limited
- NIKO (NECO) Limited
The dispute concerns gas extraction from the KG D6 block, a deepwater field off India's eastern coast.
In a significant development, a Delhi High Court division bench ruled against Reliance and its partners on February 14 regarding this legal matter.
Reliance's Response
According to the company's exchange filing:
Reliance's legal counsel has advised that the court's decision and the interim demand are unenforceable.
The company intends to challenge the verdict and reassure stakeholders that it does not anticipate any financial liability from this dispute.
RIL Share Price Performance
Here is the table with the given data:
Period | Change (%) |
1 Day | -1% |
3 Days | -4% |
1 Month | -6% |
3 Months | -12% |
6 Months | -23% |
1 Year | -22% |
- Current Price: ₹1,159.25 (BSE, March 4)
- 52-Week Low: ₹1,156 (hit on March 3)
Summary
Despite the legal team's confidence and planned appeal, the $2.81 billion demand has created notable pressure on Reliance shares, contributing to prolonged underperformance. With the stock now hovering around 52-week lows, investors are closely monitoring further legal proceedings and corporate updates.
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