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.