Anil Ambani led Reliance Infrastructure Ltd (Reliance Infra) will complete the sale of its integrated Mumbai power business (Reliance Energy) to Adani Transmission Ltd (ATL) for ₹18,800 crore by next week.
Reliance Infra and ATL had signed definitive binding agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for the city in December last year. The total consideration value of the deal is estimated at ₹18,800 crore, said a company statement. It added that Reliance Infra would be utilising the proceeds of of transaction to reduce its debt, making it the largest debt reducing exercise by any corporate. This monetisation is a major step in Reliance Infra’s deleveraging strategy for future growth.
Reliance Energy is India’s largest private sector integrated power utility, distributing power to nearly three million residential, industrial and commercial consumers, covering an area of 400 square km, said the statement.
It caters to a peak demand of over 1,800 MW, with annual revenues of ₹7,500 crore. Reliance Infra will focus on upcoming opportunities in asset light EPC and Defence businesses, the statement added. Reliance Infra shares on BSE closed down 2.78% at ₹396.4 in a firm Mumbai market on Monday.
