Reliance Infrastructure on Wednesday announced the signing of a binding Term Sheet with Adani Transmission Limited (ATL) for 100% stake sale of its Transmission Assets.
Reliance Infra owns the country's first 100% private sector transmission project - Western Region System Strengthening Scheme (WRSSS) - B & C projects located in the state of Maharashtra, Gujarat, Madhya Pradesh and Karnataka.
RInfra owns 74% in Parbati Koldam Transmission Company Limited (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL). All three transmission projects are completed and revenue generating.
The entire sale proceeds shall be utilized for debt reduction. The transaction is in line with the strategic plan of monetizing non-core business and focus on major growth areas like Defence and EPC business. Monetisation of Cement business has been completed and monetisation of Roads & Mumbai Power businesses are in advanced stage, the company said.
The proposed Transaction is subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions.
SBI Capital Markets Limited is acting as the financial advisors to Reliance Infra for this transaction.
Shares of Reliance Infra were seen trading at Rs 596, higher by 0.95 per cent on NSE at 11.59 am IST. It touched an intra-day high of Rs 600.75 during trade.