Reliance Infrastructure has successfully divested its entire 74 per cent stake in Parbati Koldam Transmission Company Limited (PKTCL) to India Grid Trust (IndiGrid) for an enterprise value of around Rs 900 crore. The entire proceeds from the stake sale will be used for debt reduction, the company said in a regulatory filing.
"Reliance Infrastructure Limited (RInfra) announce the successful completion of sale of its entire 74 per cent equity stake in Parbati Koldam Transmission Company Limited (PKTCL) to India Grid Trust (IndiGrid) for an enterprise value of approximately Rs 900 crore. RInfra owns 74 per cent in PKTCL located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL)," RInfra said in its filing.
The deal was announced on November 28, 2020, with the signing of a definitive binding agreement between RInfra and IndiGrid. It was closed on January 8, 2021, with transfer of shares of PKTCL and receipt of sale consideration.
Utilising the sales proceeds for debt reduction, RInfra has reduced its consolidated debt by around 6 per cent from Rs 14,000 crore to Rs 13,100 crore, the company stated.
IndiGrid is India's first power sector Infrastructure Investment Trust, owning AAA-rated power transmission assets in India. With this acquisition, IndiGrid owns 12 operating power transmission assets with a total asset under management of over Rs 14,500 crore.
Reliance Infrastructure is one of the largest infrastructure companies, developing 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. It is also a leading utility company having presence across the value chain of power businesses i.e. Generation, Transmission and Distribuion.