Reliance Infrastructure Limited has announced the completion of sale of its entire 74% equity stake in Parbati Koldam Transmission Company Limited (PKTCL) to India Grid Trust (IndiGrid) for an enterprise value of Rs.900 crore.
RInfra owns 74% in Parbati Koldam Transmission Company Limited (PKTCL) located in the state of Himachal Pradesh and Punjab in joint venture with Power Grid Corporation of India Limited (PGCIL).
The deal was announced in November 2020 with the signing of a definitive
binding agreement between RInfra and IndiGrid and has now been completed with transfer of shares of PKTCL, and receipt of sale consideration.
INDIGRID is 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 AUM of over Rs.14,500 crore.
The total transaction value is Rs. 900 crore. The entire sale proceeds are
being utilized for debt reduction. RInfra has reduced its total debt liabilities by ~6 percent from the deal proceeds.
RInfra is an infrastructure company, developing projects through various Special Purpose Vehicles (SPVs) in several growth sectors such as Power, Roads and Metro Rail in the Infrastructure space and the Defence sector.
RInfra provides Engineering and Construction (E&C) services for developing power, infrastructure, metro and road projects. RInfra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis; nine road projects on build, operate and transfer (BOT) basis. RInfra is also a utility company having presence across the value chain of power businesses i.e. Generation, Transmission and Distribution.
-AK
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.