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Adani Transmission buys RInfra's Mumbai power biz; shares surge up to 10%

Adani Transmission has locked in upper circuit of 10% at Rs 225, while Reliance Infrastructure surged 7% to Rs 498 on back of three-fold jump in trading volumes on the BSE.

SI Reporter  |  Mumbai 

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Shares of and (RInfra) surged up to 10% on the BSE in intra-day trade after signed a definitive binding agreement with for sale of its integrated Mumbai power business for total consideration of Rs 18,800 crore. Mumbai Power Business includes integrated business of generation, transmission and distribution (GTD) of power for Mumbai. “Total deal value is at Rs 13,251 crore. This comprises of business valued at Rs 12,101 crore and regulatory assets approved so far of Rs 1,150 crore,” said in a press release. In addition, regulatory assets under approval estimated at Rs 5,000 crore and net working capital on closing estimated at Rs 550 crore will flow directly to Total consideration value is estimated at Rs 18,800 crore, it added. will utilize the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and up to Rs 3,000 crore cash surplus. This is the largest ever debt reducing exercise by any Corporate. This monetization is a major step in RInfra’s deleveraging strategy for future growth. “The acquisition marks our foray in the distribution sector in India.

We see the distribution sector as the next sun rise sector as India embarks on its mission to achieve 24X7 power to all. With this acquisition, will enjoy benefit of scale and of being an integrated distribution and transmission business in India,” Gautam Adani, Chairman of Adani Group said. has locked in upper circuit of 10% at Rs 225 on the BSE. The trading volumes on the counter more than doubled with a combined 3.57 million shares changed hands on the NSE and BSE. There were pending buy orders for 275,372 shares on both the exchanges at 03:04 PM; too surged 7% to Rs 498 on back of three-fold jump in trading volumes. A combined 6.97 million shares changed hands on the counter on both the exchanges.

First Published: Thu, December 21 2017. 15:13 IST