Reliance Infrastructure shares gained as much as 3.88 per cent in the early trade on Friday after the company on Thursday said that it has agreed to sell its cement business to Birla Corporation Ltd for Rs 4,800 crore, as part of its efforts to reduce debt.
At 10.13 am, shares of Reliance Infra were trading 2.64 per cent up at Rs 420.70. The scrip opened at Rs 419 and had touched a high and low of Rs 425.75 and Rs 413.10, respectively, in trade so far.
Later, shares of Reliance Infra closed 6.75 per cent up at Rs 437.50.
“Under this transaction Birla Corporation will acquire the 100 per cent shareholding of Reliance Infrastructure in Reliance Cement Company Private Ltd. The transaction is subject to approval of the Competition Commission of India and other applicable regulatory approvals,” Reliance Infrastructure said in a BSE filing.
Reliance Infrastructure is an affiliate of billionaire Anil Ambani’s Reliance Group conglomerate. Reliance Infrastructure’s cement arm has an integrated cement capacity of 5.08 million tonnes per annum (MTPA) at Maihar, Madhya Pradesh and Kundanganj, Uttar Pradesh and a grinding unit of 0.5 MTPA at Butibori, Maharashtra.
Reliance Infrastructure Ltd (RInfra) is one of the largest infrastructure companies, developing projects
through various Special Purpose Vehicles (SPVs) in several high growth sectors within the
infrastructure space such as Power, Roads, Metro Rail, Cement and Defence