InvestorQ : Why has Reliance Infra sold its stake in its subsidiary to India Grid Trust?
Lavanya Subramanian made post

Why has Reliance Infra sold its stake in its subsidiary to India Grid Trust?

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Anamika Sodhani answered.
11 months ago
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Reliance Infrastructure, part of the ADAG group, has completed the sale of its total 74% holding in PKTCL to the India Grid Trust for a consideration of Rs.900 crore. The company will use the proceeds for debt reduction. This is expected to reduce the total outstanding debt of Reliance Infra from Rs.14,000 crore to Rs.13,100 crore.

Reliance Infra had a 74% stake in Parbati Koldam Transmission Company Limited or PKTCL located in the state of Himachal Pradesh and Punjab. This was a joint venture with the Power Grid Corporation. The deal was finalized with a definitive binding agreement between Reliance Infrastructure and IndiGrid and transfer of shares has been completed.

Just for information, the IndiGrid is India's first power sector Infrastructure Investment Trust and currently owns a portfolio of AAA-rated power transmission assets. Now, with the RINFRA deal, IndiGrid owns 12 operating power transmission assets with AUM of Rs.14,500 crore. RINFRA has committed to use the entire funds for debt reduction only.

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