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Adani Transmission surges on talks to acquire Reliance Infra's Mumbai power biz

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Capital Market
Last Updated : Oct 11 2017 | 12:01 AM IST

Adani Transmission was locked at 10% upper circuit at Rs 193.25 at 12:45 IST on BSE after the company said it has entered into a period of exclusivity with Reliance Infrastructure for acquiring the latter's Mumbai power business.

The announcement was made during market hours today, 10 October 2017.

Shares of Reliance Infrastructure (RInfra) were up 0.56% at Rs 479.75.

Meanwhile, the S&P BSE Sensex was up 81.17 points or 0.25% at 31,928.06.

On the BSE, 4.62 lakh shares of Adani Transmission (ATL) were traded on the counter so far as against the average daily volumes of 1.18 lakh shares in the past one quarter. The stock had hit a high of Rs 193.25 so far during the day, which is a record high. The stock hit a low of Rs 174.05 so far during the day. The stock had hit a 52-week low of Rs 40 on 9 November 2016.

The stock had outperformed the market over the past one month till 9 October 2017, advancing 33.36% compared with the Sensex's 0.5% rise. The stock had also outperformed the market over the past one quarter, gaining 36.89% as against the Sensex's 1.55% rise. The scrip had also outperformed the market over the past one year, advancing 323.37% as against the Sensex's 13.49% rise.

The large-cap company has equity capital of Rs 1099.81 crore. Face value per share is Rs 10.

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ATL today, 10 October 2017 announced that it has entered into a period of exclusivity with RInfra until 15 January 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. Accordingly, there can be no certainty that a transaction will result, ATL said in a statement. The proposed transaction would further strengthen ATL's footprint in power transmission sector while marking its maiden foray into the power distribution sector.

RInfra intends to utilize the proceeds of the proposed transaction entirely to reduce its debt, and further strengthen its financial position to tap mega growth opportunities in defence and EPC for the infrastructure sector.

On a consolidated basis, net profit of Adani Transmission declined 31.5% to Rs 84.10 crore on 3.6% decline in net sales to Rs 609.32 crore in Q1 June 2017 over Q1 June 2016.

Adani Transmission is into power transmission business and is a part of business conglomerate Adani Group.

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First Published: Oct 10 2017 | 12:43 PM IST

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