reliance, reliance mumbai power, reliance infrastructure, reliance mumbai, reliance adani, adani transmission, adani reliance deal, adani mumbai power, reliance mumbai, reliance power
Energy & PowerNews

Reliance Infra to sell Mumbai power business to Adani Transmission for 18,800 crore

Last Updated on June 29, 2018 by Admin

Maharashtra Electricity Regulatory Commission (MERC) has recently given its approval to the proposed 100% stake sale of Reliance Infrastructure Ltd.’s integrated Mumbai power business to Adani Transmission Ltd. Following the commission’s nod, it is expected that the transaction will be closed in July 2018. MERC had concluded its hearing into the matter and reserved its order on June 14, 2018. The total consideration value of the deal is estimated at Rs. 18,800 crore.

This is the largest ever debt reducing exercise by any Corporate

Reliance Infrastructure Ltd. has already received the approval of Competition Commission of India (CCI) and its share-holders for the deal.

Reliance Infrastructure Ltd. and ATL had signed Definitive Binding Agreement for 100% stake sale of the integrated business of generation, transmission and distribution of power for Mumbai in December 2017.

Reliance Infrastructure Ltd. will utilize the proceeds of this transformative transaction entirely to reduce its debt, becoming debt free and up to Rs. 3,000 crore cash surplus. This is the largest ever debt reducing exercise by any Corporate. This monetization is a major step in Reliance Infrastructure Ltd. deleveraging strategy for future growth.

Reliance Infrastructure Ltd. 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, Reliance Infrastructure Ltd. will focus on upcoming opportunities in asset light EPC and Defence businesses.

Source: RInfra Media Release


This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More