Reliance Infrastructure to sell Mumbai power biz to Adani

Reliance Infrastructure Ltd has signed a definitive binding agreement with Adani Transmission Limited to sell its Mumbai power business for Rs. 13,251 crore.

The deal includes RInfra’s integrated business of generation, transmission and distribution. The deal value comprises business valued at Rs. 12,101 crore and regulatory assets of Rs. 1,150 crore. “In addition, regulatory assets under approval estimated at Rs. 5,000 crore and net working capital on closing, estimated at Rs. 550 crore, will flow directly to RInfra. Total consideration value is estimated at Rs. 18,800 crore,” RInfra said in a statement.

RInfra will utilise the entire proceeds of this transaction to reduce its debt of Rs. 20,000 crore. The company’s Mumbai power business (known as Reliance Energy) distributes power to nearly 3 million residential, industrial and commercial consumers in the city’s suburbs, 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 and stable cash flows. “Going forward, RInfra will focus on upcoming opportunities in asset light EPC and defence businesses,” the statement said.