Adani Transmission up 10% on signing agreement with Reliance Infra

The stock hit a new high of Rs 193, up 10% on BSE, appreciating 201% thus far in the current financial year 2017-18.

Adani Transmission hit a new high of Rs 193, up 10% on BSE, after the company said it has entered into a period of exclusivity with Reliance Infrastructure (RInfra) until January 15, 2018 in relation to discussions for the proposed acquisition of the integrated business of generation, transmission and distribution of power for Mumbai City from RInfra.

“The proposed transaction is subject to confirmatory diligence, definitive documentation, and customary approvals,” Adani Transmission said in media release.

Accordingly, there can be no certainty that a transaction will result. Further announcements will be made at an appropriate stage, it added.

The company said the proposed transaction would be further strengthen Adani Transmission’s footprint in power transmission sector while marking its maiden foray into the power distribution sector.

The trading volumes on the counter nearly doubled with a combined 2.08 million shares have changed hands on the BSE and NSE till 10:33 AM. There were pending buy orders for 174,216 shares on both the exchanges.

Thus far in the current financial year 2017-18 (FY18), the market price of Adani Transmission has appreciated by 201% from Rs 64 on March 31, 2017. On comparison, the S&P BSE Sensex was up 8% during the period.

Reliance Infrastructure was trading 1% higher at Rs 483, after hitting high of Rs 494 on BSE in intra-day trade.