Reliance Infrastructure seeks ASM review amid 33% rally

What triggered the latest focus on Reliance Infrastructure

Reliance Infrastructure Ltd has submitted a formal representation to Sebi and BSE seeking a review of the Additional Surveillance Measure (ASM) framework linked to the Insolvency and Bankruptcy Code (IBC) and the trading restrictions applied to its shares. The request comes as the stock has recorded multiple sessions of sharp gains, repeatedly hitting the 5 percent upper circuit on certain trading days.

The company’s key argument is that the current surveillance mechanism can create price moves that look mechanical rather than market-led. Reliance Infrastructure also said the restrictions have an adverse impact on more than 7 lakh public shareholders.

The company’s representation to Sebi and BSE

In its statement, Reliance Infrastructure said the ASM linked to IBC currently permits trading only once a week and within a narrow 5 percent price band. According to the company, this structure makes price movements “largely mechanical and predictable.”

Reliance Infrastructure added that such restrictions may not adequately reflect prevailing business fundamentals, operational performance, or long-term value creation potential. The representation seeks a review of both the ASM linkage and the related trading constraints.

How the ASM restriction shapes price discovery

When a stock is permitted to trade only once a week with a tight 5 percent band, the market’s ability to discover a clearing price can be constrained. Reliance Infrastructure’s comments point to a situation where demand and supply may not fully meet through normal continuous trading.

In this setup, repeated upper circuit sessions can occur if buy interest is strong but selling interest remains limited within the permitted band. The result can be a “locked” price that does not move further even if buy orders continue to accumulate.

Six straight sessions of gains and about 33% jump

Reliance Infrastructure shares have been on an upward trajectory for six sessions. Over this period, the stock has risen by about 33 percent, with one data point in the article noting a cumulative return of 32.92 percent across the six trading sessions.

The stock rally was also linked in the article to investor interest around corporate updates, including shareholder approvals for fundraising and borrowing flexibility, along with other clarifications.

Trading-day snapshots: upper circuits, BE series, and liquidity

In one trading snapshot cited, the stock was in the BE series and hit the 5 percent upper circuit, closing at ₹89.09 after opening at the same level. Because the 5 percent band capped the maximum daily gain, trading effectively froze at the ceiling price.

For that session, total traded volume was 75,856 shares with turnover of ₹0.68 crore. The article noted that the circuit lock suggested demand exceeded what the price band could accommodate, leaving unfilled buy orders as sellers remained absent.

In another session referenced, the stock was quoted at ₹173.20 and was locked in the 5 percent upper circuit on the NSE, with an intraday high of ₹173.20 cited as the upper price band for the day.

Key corporate developments cited alongside the rally

Reliance Infrastructure has flagged shareholder approval for key fundraising measures. On December 18, 2025, the company announced the results of a postal ballot through e-voting, confirming approval for two special resolutions.

The resolution to allow issuance of Foreign Currency Convertible Bonds (FCCBs) or other securities was approved by 97.94 percent of participating shareholders. A second resolution enabling enhanced borrowing powers passed with 89.42 percent votes in favour. The article said these approvals strengthen financial flexibility for ongoing infrastructure projects across Power, Roads, Metro Rail, and Defence sectors.

Defence-led headlines: Rheinmetall order and aircraft partnership mention

The article also referenced a major export order tied to the group’s defence business. It said Reliance Defence Limited, a subsidiary, secured an export order worth ₹600 crore from Germany-based Rheinmetall Waffe, after which Reliance Infrastructure shares hit a 5 percent upper circuit.

Separately, it noted a partnership headline involving Dassault Aviation and a Reliance Infrastructure unit to manufacture Falcon 2000 jets in India, alongside a 5 percent rise in Reliance Infrastructure shares.

Valuation, technical indicators, and shareholding changes cited

One section of the provided text described Reliance Infrastructure trading at low valuation multiples, citing a P/E ratio of 2.11 and a P/B ratio of 0.26. It also cited RSI (14-day) at 28.8 and said the stock was below 7 out of 8 simple moving averages (SMAs), with the exception of the short-term 5-day SMA.

On shareholding, the promoters maintained their stake at 19.05 percent in the September 2025 quarter. Mutual fund holdings increased from 0.29 percent to 0.35 percent, while FII/FPI holdings fell from 10.26 percent to 7.07 percent.

Price range references and recent performance context

The supplied text contained two separate references to the 52-week range. One cited a 52-week high of ₹423.40 and a low of ₹149.16. Another cited a 52-week high of ₹425 and a low of ₹163.75, and stated that the low was touched on Tuesday.

It also said the stock was down about 27 percent over the past month in one context, and down 30 percent over the past six months in another. At the same time, it said Reliance Infrastructure stock has soared 101 percent in the past year, and surged over 1,000 percent over the past five years.

What the volume and delivery cues imply

While the upper circuit sessions indicate strong buying interest, the article also pointed to a sharp fall in delivery volume during the rally. It said this may suggest the move is being driven more by speculative interest or short-term trading rather than long-term accumulation.

That combination of circuit-locked prices and weaker delivery participation is relevant for investors tracking whether the rally is broad-based or primarily momentum-led.

Key facts table

Market impact and what to watch next

The combination of repeated upper circuits and an ASM framework that restricts trading frequency keeps attention on liquidity and price discovery in the stock. Reliance Infrastructure’s representation frames the issue as one of market structure, arguing that the restriction design can make price action appear predictable and disconnected from fundamentals.

The next practical marker is whether Sebi and BSE respond to the company’s request and whether the ASM-linked constraints change. Separately, investors will track how the stock behaves when not locked at the 5 percent band, and whether participation broadens beyond short-term trading activity.

Conclusion

Reliance Infrastructure’s rally has coincided with a formal request to regulators to review IBC-linked ASM trading restrictions that the company says affect more than 7 lakh public shareholders. With the stock seeing repeated 5 percent upper circuits and mixed cues on delivery participation, the focus now shifts to regulatory follow-up and subsequent trading sessions under the prevailing framework.