Reliance Infra sells Mumbai power business to Adani for Rs 18,800 crore

Anil Ambani-led Reliance Infrastructure signed an agreement to sell its Mumbai power business to Adani Transmission for a total consideration of Rs 18,800 crore. Reliance Infrastructure (RInfra) announced the signing of a definitive binding agreement with Adani Transmission (ATL) for a 100 percent stake sale of its Mumbai power business, which includes integrated business of generation, transmission and distribution of power.

Adani Transmission Ltd, the power distribution arm of Adani Enterprises, will pay an initial Rs 13,251 crore for Reliance's Mumbai power business and Rs 5,550 crore at a later date based on certain approvals, the Reliance statement said.

Gautam Adani, Chairman of the Adani Group, said: "The acquisition marks our foray into the distribution sector in India. We see distribution as the next sunrise sector as India embarks on its mission to achieve 24x7 power for all."

He further said, "We see a massive growth opportunity and will look at both organic and inorganic opportunities to build a market leading distribution company.''

Cyril Amarchand Mangaldas Managing Partner Cyril Shroff, Mumbai Partners Nivedita Rao, Saurya Bhattacharya and Subhalakshmi Naskar acted for Adani Transmission.

J Sagar Associates (JSA) advised Reliance Infrastructure with a team led by Co-Managing Partner Dina Wadia, with retained Partner Manav Raheja and Associate Ronak Shah, and Principal Associate Arup Pereira.

Also, Cyril Shroff’s daughter, Paridhi Shroff, had married Gautam Adani’s son Karan Adani in 2013.