Moneycontrol
Last Updated : Mar 18, 2019 02:21 PM IST | Source: Moneycontrol.com

Reliance Infrastructure falls nearly 4% post entire stake sale in subsidiary

Reliance Infrastructure will utilize the proceeds of this transaction entirely to reduce its debt, company said.

 
 
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Shares of Reliance Infrastructure slipped nearly 4 percent intraday March 14 after the company signed an agreement to sale entire stake in its subsidiary company.

In its BSE release Reliance Infrastructure announced the signing of definitive binding agreement with Cube Highways and Infrastructure III Pte for the sale of its 100 percent stake in Delhi-Agra (DA) Toll Road (DATRPL).

The total deal enterprise value is over Rs 3,600 crore and in addition, NHAI claims of Rs 1,200 crore to be filed by DA Toll Road will flow directly to Reliance Infrastructure.

The transaction is subject to all requisite permissions, sanctions and approvals, including the shareholding transfer restrictions set out in the concession agreement executed between NHAI and DTRPL.

DATRPL is not a material subsidiary of the company. The sale of equity interests in DATRPL to Cube Highways is not a related party transaction.

Reliance Infrastructure will utilise the proceeds of this transaction entirely to reduce its debt, company said.

After the completion of the transaction for Delhi-Agra Toll Road, the debt of Reliance Infrastructure will reduce 25 percent to less than Rs 5,000 crore, it added.

At 1430 hours, Reliance Infrastructure was quoting at Rs 126.15, down Rs 3.40, or 2.62 percent on the BSE.
First Published on Mar 14, 2019 02:45 pm
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