Anil Ambani led-Reliance Infrastructure (RInfra) has agreed to sell its power transmission assets to Adani Group as part of its plans to exit non-core areas.
While the companies did not disclose the deal size, industry estimates pegged it at ₹2,000 crore.
The money will be used by Reliance Infra to pare its debt from ₹21,000 crore to ₹19,000 crore.
RInfra currently has a portfolio of three operational transmission projects with an asset base of ₹4,600 crore.
These projects comprise approximately 4,100 circuit kilometres (ckm) of transmission lines.
This includes the country’s first fully owned private sector transmission project – Western Region System Strengthening Scheme located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
RInfra also owns 74 per cent in Parbati Koldam Transmission Company Ltd located in Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Ltd.
For Reliance, the transaction is in line with the strategic plan of monetising non-core business and focus on major growth areas such as defence and EPC business.
The company has already sold its cement business and monetisation of roads and Mumbai power businesses are in advanced stage.
For Adani Transmission Ltd (ATL), post this deal, it will own and operate 10,800 circuit km of power transmission projects up from 5,000 ckm now.
Gautam Adani, Chairman, Adani Group, said: “ With this acquisition, ATL will enjoy substantial benefit of scale driving and is in sync with the deep-rooted strategy of ATL to enhance the value for the stakeholders through both organic as well as inorganic growth.”
On Wednesday, Adani Transmission scrip was up 7.36 per cent to ₹43.05 on the BSE.
Reliance Infra closed flat at ₹591 compared to its previous closing price.