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India’s RInfra sells Mumbai power business to Adani [free access]

December 21, 2017

Reliance Infrastructure Limited (RInfra), part of the India-based conglomerate Reliance Group, has signed a definitive binding agreement with Adani Transmission Limited (ATL) for 100 per cent stake sale of its Mumbai area’s integrated power business of generation, transmission and distribution.


The total deal is valued at INR132.51 billion, comprising business valued at INR121.01 billion and approved regulatory assets worth INR11.50 billion.


RInfra will utilise the entire proceeds of this transaction to reduce its INR200 million debts (thus becoming debt-free) and INR30 billion worth of cash surplus.


The company’s Mumbai power business (known as Reliance Energy) distributes power to nearly 3 million residential, industrial and commercial consumers in the city’s suburbs, covering an area of 400 sq km. It caters to a peak demand of over 1,800 MW, with annual revenues of INR75 billion and stable cash flows.


Going forward, RInfra will focus on upcoming opportunities in asset-light engineering, procurement and construction (EPC) and defence businesses.