Reliance Infrastructure Ltd announced on Monday that the transaction for the sale of its integrated Mumbai power distribution business to Adani Transmission Ltd (ATL) will be closed by next week.
RInfra and ATL had signed the Definitive Binding Agreement for 100 per cent stake sale of the integrated business of generation, transmission and distribution for Mumbai in December 2017.
The total consideration value for the deal is around Rs 18,800 crore, said an official of Reliance Energy, as the company's power business is known in Mumbai.
The RInfra will utilise the proceeds of this transformative transaction entirely to reduce its debt, making it the largest ever debt-reducing exercise by any corporate in the country.
This monetisation is a major step in RInfra's deleveraging strategy for future growth.
Reliance Energy is India's largest private sector integrated power utility distributing electricity to nearly three million residential, industrial and commercial consumers in Mumbai suburbs spread over 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, RInfra will focus on upcoming opportunities in asset light EPC and defence businesses, the official added.
--IANS
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