Adani Transmission shares jump 10%; hit upper circuit

Shares of Adani Transmission

surged 10 per cent today as Reliance Infrastructure announced

that it has entered into exclusive talks with the Adani Group

company to sell its Mumbai power business.

The stock zoomed 9.99 per cent to settle at Rs 193.25 --

its highest trading permissible limit and also its 52-week

high -- on BSE.

At NSE, shares of the company jumped 9.99 per cent to

close at Rs 193.15 -- its upper circuit limit.

Shares of Reliance Infrastructure ended almost flat at Rs

477.65, up 0.12 per cent.

In a regulatory filing today, Reliance Infrastructure

said, "It has entered into a period of exclusivity until

January 15, 2018, in relation to discussions for the proposed

sale of its integrated business of generation, transmission

and distribution of power for Mumbai city to Adani

Transmission".

The proposed transaction is subject to confirmatory

diligence, definitive documentation and customary approvals.

"Accordingly, there can be no certainty that a

transaction will result. Further, announcements will be made

at an appropriate stage," Reliance Infra added.

The Anil Ambani-led Reliance Infra intends to utilise the

proceeds of the proposed transaction entirely to reduce its

debt and further strengthen its financial position to tap mega

growth opportunities in defence and EPC (engineering,

procurement, construction) for the infrastructure sector.

According to Adani Transmission, the proposed transaction

will strengthen its footprint in the power transmission sector

and also mark its foray into the distribution space.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)