Reliance Infrastructure shares jump over 7% as Greenko plans to acquire Mumbai power business
Shares of Reliance Infrastructure on Tuesday surged over 7% on news reports that the renewable resources major Greenko is in talks with Reliance Infrastructure to acquire its Mumbai electricity business for an enterprise value of Rs 10,000-13,000 crore ($1.75 – 2 billion), according to an Economic Times report. The stock of Anil Ambani-led Reliance Infrastructure rose as much as 7.65% to the day’s high of Rs 520.8 on NSE.
The Mumbai-based power business caters around 30 lakh customers with its 1,800 MW (megawatt) of distribution along with generation facilities. The distribution franchise is nine decades old with the license valid till August 2036.
Meanwhile, NSE has sought clarification from Reliance Infrastructure Limited with respect to recent news. In this regard, Exchange has advised the Company to provide clarification/confirmation on the news item in detail which includes — whether such negotiations were taking place and is the company aware of any information that has not been announced to the Exchanges which could explain the aforesaid movement in the trading. The response from the company is awaited yet.
Earlier last month, Reliance Infrastructure (RInfra) reported a 23.91% decline in consolidated net profit for the first quarter ended 30 June at Rs 334 crore as compared to Rs 439 crore in the corresponding quarter last fiscal. Total income for April-June quarter stood at Rs 7,848 crore against Rs 7,538 crore in Q1 FY17, registering a growth 4.11%.
“Overall, it has been a good quarter for the company. Our income from the EPC business has gone down this quarter as compared to last year but we hope this share will keep increasing the coming quarters as we will keep looking at opportunities for participating in projects across the sectors,” PTI reported citing Chief Executive Lalit Jalan.