Shares of Adani Transmission surged 10 per cent today as Reliance Infrastructure announced that it has entered into exclusive talks with the Adani Group company to sell its Mumbai power business. The stock zoomed 9.99 per cent to settle at Rs 193.25 -- its highest trading permissible limit and also its 52-week high -- on BSE. At NSE, shares of the company jumped 9.99 per cent to close at Rs 193.15 -- its upper circuit limit. Shares of Reliance Infrastructure ended almost flat at Rs 477.65, up 0.12 per cent. In a regulatory filing today, Reliance Infrastructure said, "It has entered into a period of exclusivity until January 15, 2018, in relation to discussions for the proposed sale of its integrated business of generation, transmission and distribution of power for Mumbai city to Adani Transmission". The proposed transaction is subject to confirmatory diligence, definitive documentation and customary approvals. "Accordingly, there can be no certainty that a transaction will result.
Further, announcements will be made at an appropriate stage," Reliance Infra added. The Anil Ambani-led Reliance Infra intends to utilise the proceeds of the proposed transaction entirely to reduce its debt and further strengthen its financial position to tap mega growth opportunities in defence and EPC (engineering, procurement, construction) for the infrastructure sector. According to Adani Transmission, the proposed transaction will strengthen its footprint in the power transmission sector and also mark its foray into the distribution space.
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