Reliance Infrastructure and Adani Transmission rose 1.63% and 7.11% respectively at 14:33 IST on BSE after these two companies announced signing binding term sheet for 100% stake sale of Reliance Infrastructure's transmission assets.
The announcement was made during market hours today, 5 October 2016.Reliance Infrastructure (up 1.63% at Rs 599.35) and Adani Transmission (up 7.11% at Rs 42.95) edged higher.
Meanwhile, the S&P BSE Sensex was down 48.39 points or 0.17% at 28,286.16.
Reliance Infrastructure (RInfra) said that the transaction is in line with the strategic plan of monetizing non-core business and focus on major growth areas like defence and EPC business. The entire sale proceeds shall be utilized for debt reduction, it added.
RInfra is one of the largest infrastructure companies, developing projects through various special purpose vehicles (SPVs) in several high growth sectors such as power, roads and metro rail in the infrastructure space and the defence sector. The company's consolidated net profit rose 7.2% to Rs 438.80 crore on 2.6% rise in net sales to Rs 7032.83 crore in Q1 June 2016 over Q1 June 2015.
Adani Transmission is into power transmission business and is a part of business conglomerate Adani Group. The company's consolidated net profit jumped 297.2% to Rs 122.71 crore on 35% growth in net sales to Rs 632.01 crore in Q1 June 2016 over Q1 June 2015.
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