Reliance Infrastructure shares advanced as much as 1.58 per cent in early trade on Thursday after the company announced the signing of a binding term sheet with Adani Transmission for 100 per cent stake sale of its transmission assets. The entire sale proceeds shall be utilised for debt reduction. The transaction is in line with the strategic plan of monetising non-core business and focus on major growth areas like Defence and EPC business.
At 10.21 am, shares of Reliance Infrastructure were trading 1.07 per cent up at Rs 597.40. The scrip opened the day at Rs 593.70 and has touched a high and low of Rs 600.40 and Rs 590.60, respectively, in trade so far. Benchmark BSE Sensex was trading 58.64 per cent up at Rs 28,283.90.
The proposed transaction is subject to due diligence, definitive documentation, applicable regulatory approvals and certain other conditions. Further announcements will be made at an appropriate stage. SBI Capital Markets is acting as the financial advisors to RInfra for this transaction.
For the quarter ended June 30, 2016, the company reported a consolidated net profit of Rs 414.31 crore, down 8.15 per cent, against Rs 451.06 crore in the same quarter a year ago. However, net sales of the company jumped by 2.58 per cent year-on-year to Rs 7032.83 crore for the quarter under review. It had reported a net sales of Rs 6856 crore in the corresponding quarter a year ago.
Reliance Infrastructure is an infrastructure player. It develops 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.