RInfra's Mumbai power biz sale a positive; analysts cautiously optimistic

Though analysts see the development as a positive for RInfra, they suggest investors ascertain how profitable the other business segments of the remaining entity are before taking an investment call

Completion of its Mumbai power business sale to Adani Transmission and the plan to cut debt sharply from the earlier Rs 220 billion to Rs 75 billion and become a debt-free company by next year pushed the Reliance Infra (RInfra) stock higher by over 7 per cent to Rs 477 levels on the Bombay Stock Exchange (BSE) in intra-day deals on Thursday in an otherwise weak market. The stock closed 5.54 per cent higher at Rs 463.10.

The rub-off effect was visible on the other Anil Ambani – controlled companies as well, with Reliance Power and Reliance Capital rallying over