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Reliance Industries Ltd selling a Company to Adani Group for Reducing Debt

In order to pare debt Anil Ambani’s Reliance Infrastructure Ltd has agreed to sell its Mumbai power business to Adani Transmission Ltd. The whole deal valued at Rs 13,251 crore. The Mumbai power business adds up to Rs 7,500 crore of annual revenues to Reliance Infrastructure, the company said.

The company will sell 100 percent stake, valuing the business at Rs 12,101 crore and regulatory assets at Rs 1,150 crore. The transaction could fetch another Rs 5,000 crore through regulatory assets under approval and Rs 550 crore from the net working capital. That would take the total consideration to Rs 18,800 crore.

The business includes generation, transmission, and distribution of power across Mumbai and caters to nearly 3 million residential, industrial, and commercial consumers.

Reliance Infrastructure will use the proceeds to reduce its debt. It will also be looking to monetize its cement, road, and telecom tower assets to reduce overall debt, which stood at Rs 25,800 crore as of March 2017.

After the entire deal is gone through (Rs 18,800 crore), the company is expected to be debt-free and would remain with a surplus of Rs 3,000 crore.


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