Reliance Infrastructure has sold off its total 4.12% stake in India Energy Exchange for Rs 103 cr, ten times higher than the original purchase value, to a foreign portfolio investor.
With this stake sale, Reliance Infra has fully exited from IEX, India’s largest power exchange.This deal comes on the mends of Jindal Steel & Power Ltd (JSPL) selling its 4.12% stake in IEX to Motilal Oswal PE and global investment firm Bessemer selling its stake in two separate deals to Dalmia group and TVS Capital.
In the power market IEX has total 9% share and Reliance Infra was one of the primary investors in the company with 4.12% stake, bought in 2007 for Rs 1.25 crore.
Meanwhile, Reliance Infra is also apparently in talks with Canada-based Brookfield Asset Management to shift its entire portfolio of its road projects.
The proposed sale is a part of the company’s tactic approach to streamline its substantial debt by exiting from capital intensive businesses like road construction.
Reliance Infra is working on projects through various Special Purpose Vehicles (SPVs) in several sectors such as power, roads and metro rail in the infrastructure space and also has eminent a presence in the defence sector.
It is also present across the value chain of power businesses, with power generation, distribution, transmission and power trading.
Reliance Infrastructure exits IEX, sells 4% stake for Rs 103 cr to an FPI
