Reliance Infrastructure to close Rs 19K cr Mumbai power biz sale with Adani next week
The two had signed the pact for 100 percent stake sale of R-Infra's integrated business of generation, transmission, and distribution of power for Mumbai in December 2017.
The company said that the total consideration value of the deal is estimated at Rs 18,800 crore.
R-Infra also said that it will utilize the proceeds of this transformative transaction entirely to reduce its debt.
This is the largest ever debt reducing exercise by a corporate, it said, adding that the monetization is a major step in R-Infra's deleveraging strategy for future growth.
The company claimed that the Reliance Infrastructure Mumbai Power business (known as Reliance Energy) is India’s largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km.
It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 7,500 crore with stable cash flows. Going forward, R-Infra will focus on upcoming opportunities in asset light EPC and Defence businesses, it said.
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