Reliance Infrastructure said on Monday that it will close by next week the sale of its integrated Mumbai distribution business to Adani Transmission for about Rs 190 billion.
The two had signed the pact for 100 per cent stake sale of R-Infra's integrated business of generation, transmission and distribution of power for Mumbai in December 2017.
The company said that the total consideration value of the deal is estimated at Rs 188 billion.
"The transaction for the sale of Reliance Infrastructure Ltd's Integrated Mumbai Distribution Business to Adani Transmission Ltd. (ATL) will be closed by next week," it said in a statement.
R-Infra also said that it will utilise the proceeds of this transformative transaction entirely to reduce its debt.
This is the largest ever debt reducing exercise by a corporate, it said, adding that the monetisation is a major step in R-Infra's deleveraging strategy for future growth.
The company claimed that the Reliance Infrastructure Mumbai Power business (known as Reliance Energy) is India's largest private sector integrated power utility distributing power to nearly 3 million residential, industrial and commercial consumers in the suburbs of Mumbai, covering an area of 400 sq km.
It caters to a peak demand of over 1,800 MW, with annual revenues of Rs 75 billion with stable cash flows. Going forward, R-Infra will focus on upcoming opportunities in asset light EPC and Defence businesses, it said.