RInfra surges on sale of transmission assets to Adani Transmission

Reliance Infrastructure (RInfra) has signed a binding term sheet with Adani Transmission (ATL) for 100 per cent sale of its transmission assets. SBI Capital Markets is acting as the financial advisor to RInfra for this transaction. The share price of RInfra has increased by 2.80 per cent on bourses in early trades; and is trading at Rs 596.8 on an intraday basis. Meanwhile, ATL’s share price also has  boosted by 11.1 per cent on bourses in early trades; and is trading at Rs 43.3 on intraday basis.

RInfra owns the country’s first 100 per cent private sector transmission project – Western Region System Strengthening Scheme (WRSSS) – B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka. RInfra owns 74 per cent in Parbati Koldam Transmission Company (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India (PGCIL). All three transmission projects are completed and revenue generating.

RInfra’s entire sale proceeds shall be utilized for debt reduction. The transaction is in line with the strategic plan of monetizing non-core business and focus on major growth areas like defence and EPC business. The company’s monetisation of cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage.