ADAG shares extend gain; Reliance Infra surges 13% in two days

Reliance Group Chairman Anil Ambani with his son Anmol addresses the Annual General Meeting of Reliance Capital in Mumbai on Tuesday. (Photo: PTI)
Shares of Anil Ambani led Reliance Group (ADAG) companies were trading higher for the second straight day on the back of heavy volumes in an otherwise subdued market.

Reliance Infrastructure, Reliance Power and Reliance Capital were up in the range of 3% to 6% on the BSE. Reliance Home Finance, Reliance Communications and Reliance Nippon Life Asset Management, too, moved up 1% as compared to 0.11% decline in the S&P BSE Sensex at 03:18 pm.

Reliance Infrastructure has rallied 9% to Rs 478 on the BSE in intra-day trade, extending its previous day’s 4% gain after the company said it completed 100% sale of its integrated Mumbai power distribution business to Adani Transmission.

The total transaction value is Rs 188 billion. Reliance Infrastructure has reduced debt liabilities by Rs 138 billion from the deal proceeds.

“The deal was announced in December 2017 with the signing of a definitive binding agreement between Reliance Infrastructure and Adani Transmission, and has now been completed with transfer of shares and receipt of sale consideration,” Reliance Infrastructure said in a press release.

Regulatory assets under approval of Rs 50 billion will flow entirely to Reliance Infrastructure making the Company debt-free in 2019. This is the largest ever debt reduction for any company in power sector in India. With this deal, Reliance Infrastructure is set to achieve top-end ratings, it added.

RELIANCE POWER 36.60 34.55 5.93
RELIANCE INFRA. 463.50 438.80 5.63
RELIANCE NAV.ENG 16.14 15.38 4.94
RELIANCE CAPITAL 463.10 450.60 2.77
RELIANCE HOME 64.40 62.80 2.55
RELIANCE NIP.LIF 236.20 234.20 0.85
REL. COMM. 18.60 18.55 0.27