Adani Transmission, Reliance Infrastructure rally up to 10% on power biz deal

Shares of Adani Transmission and Reliance Infrastructure today surged up to 10 per cent after both the companies signed a Rs 18,800 crore power business deal.

Adani Transmission soared 9.96 per cent to end at Rs 225.25 on the BSE. During the day, it jumped 9.98 per cent to Rs 225.30.

Shares of Reliance Infrastructure soared 8.12 per cent to close at Rs 504. Intra-day, it zoomed 10.44 per cent to Rs 514.85.

Reliance Infrastructure today signed an agreement to sell its Mumbai power business to Adani Transmission for a total consideration of Rs 18,800 crore.

Reliance Infrastructure (RInfra) announced the signing of a Definitive Binding Agreement with Adani Transmission (ATL) for 100 per cent stake sale of its Mumbai power business, which includes integrated business of generation, transmission and distribution of power, Reliance Infrastructure said in a BSE filing today.

According to the statement, the deal value is at Rs 13,251 crore. This comprises business valued at Rs 12,101 crore and regulatory assets approved so far of Rs 1,150 crore.

In addition, it said, regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing pegged at Rs 550 crore will flow directly to RInfra.

The company said the total consideration is estimated at Rs 18,800 crore.

RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and garnering up to Rs 3,000 crore as cash surplus.