Reliance Infrastructure Limited (RInfra) has recently signed a binding term sheet with Adani Transmission Limited (ATL) for 100 percent stake sale of its transmission assets.
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.
RInfra owns the country’s first 100 percent private sector transmission project – Western Region System Strengthening Scheme (WRSSS)–B & C projects located in Maharashtra, Gujarat, Madhya Pradesh and Karnataka. RInfra owns 74 percent in Parbati Koldam Transmission Company Limited (PKTCL) located in Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL). All three transmission projects are completed and revenue generating.
The proposed transaction is subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions. SBI Capital Markets Limited is acting as the financial advisors to RInfra for this transaction.