Stocks of Reliance Infrastructure gained nearly 8 per cent today following reports that the company is in the advanced stage of negotiations to sell its cement business.
The deal is expected to be announced this week as the Anil Ambani-led firm tries to cut debt.
The stock climbed 7.69 per cent to settle at Rs 493.05 on BSE. During the day, it rose by 8.33 per cent to Rs 496.
On NSE, it surged 7.72 per cent to close at Rs 493.20.
The company added Rs 926.72 crore to Rs 12,966.72 crore in market valuation.
The firm is in talks with buyers -- both domestic and foreign -- to sell its cement and road business, in which it has invested over Rs 15,000 crore that will be utilised to cut debt and also to fund its foray into defence manufacturing.
The company is in advanced stage of negotiations with 7 prospective buyers out of the initial 15 parties, and the deal can be finalised anytime now, a source said, adding that it can be announced as soon as Ambani returns from Russia and could be this week also.
The buyers include Blackstone, Carlyle and KKR.
"The cement deal is in the range of Rs 5,000-6,000 crore and the company expects to get close to 50 per cent of the amount after paring the debt," a person in know of the development said.
Reliance Infrastructure, with a net worth of over USD 4 billion, is trying to sell its non-core assets, including the road business to pare debt and fund expansion in the defence manufacturing sector, which it feels will be the primary driver for future growth.
