The Hindu Business Line : Talk of foray into pipeline biz lifts Reliance Ind Infrastructure

THE stock price Reliance Industrial Infrastructure has been on the rise since the beginning of this month on market expectation of the company venturing into the business of setting up gas pipeline.

The stock has gained 32 per cent this month from Rs 54.25 on July 30. Similar price movement was seen on the NSE.

Trading volumes have also jumped sharply from less than 10,000 shares daily to over a lakh shares each on the BSE and the NSE.

On Tuesday, the stock was locked in the 10-per cent upper circuit filter both on the BSE and the NSE. On the BSE, it closed at Rs 71.70 with volumes of 1.20 lakh shares and on the NSE at Rs 71.75 with volumes of 1.33 lakh shares.

Sources said Reliance Industrial is expected to begin setting up of gas pipelines. "The possibility of this looks strong as the previous name of the company was Chembur Patalganga Pipeline" said a source.

Reliance Industries has plans to set-up gas pipeline from its Krishan-Godavari basin, where it has discovered gas, till Hazira.

Reliance had in the past stated that it would set-up its own pipeline but has never indicated which company within the group will set-up the pipeline.

Company officials were not available for comments on whether Reliance Industrial was planning such venture.

Reliance Industrial has been setting up the various petrochemicals plants within its group and this has been its main source of revenues. Brokers feel if the company ventures into pipeline business, it has good growth potential.