Adani Transmission, RInfra deal for Mumbai power supply may get regulatory approval in June

ksenia kondratieva Mumbai | Updated on May 11, 2018 Published on May 10, 2018

Gautam Adani-controlled Adani Transmission Ltd is all set to close the ₹18,800-crore transaction with Reliance Infrastructure for Mumbai power generation and transmission business.

The Maharashtra Electricity Regulatory Commission (MERC) has scheduled a public hearing on the matter for June 14, Adani Transmission said in a note to its financial statements for the quarter ended March 2018.

The MERC hearing is believed to be the last step in the line of regulatory approvals required for the deal to go through, sources close to the development told BusinessLine.

The transaction was earlier approved by the Competition Commission of India (CCI).

As per the company’s regulatory filing, Adani Transmission has advanced ₹2,602 crore to RInfra as part of the deal.

“The company has given a loan of ₹2,602 crore to RInfra for which the company has the right to set off the same against the purchase consideration,” it said.

Adani Transmission and Reliance Infrastructure signed a binding share purchase agreement for RInfra's integrated business of generation, transmission and distribution of power for Mumbai in December 2017.

The total deal value was set at ₹13,251 crore, however, considering the regulatory assets under approval estimated at ₹5,000 crore and net working capital on closing estimated at ₹550 crore, the total consideration value has reached ₹18,800 crore, RInfra stated then.

According to industry sources, the funding for the deal may come from a consortium of public and private banks led by State Bank of India (SBI).

Adani Group’s spokesperson confirmed BusinessLine that the company has “arranged finances for the deal”.

Profit leaps 58%

Adani Transmission has recorded a 58 per cent increase in consolidated net profit at ₹150 crore for the quarter ended in March against ₹95 crore in the corresponding period of the previous year. The company’s net profit for FY18 increased to ₹1,143 crore from ₹416 crore a year ago.

Adani Enterprises

Ahmedabad Bureau adds: Adani Group's flagship firm Adani Enterprises has posted standalone net profit of ₹61.16 crore for the quarter ended March 2018 against net loss of ₹30.82 crore reported in the same quarter last year.

Total income for the quarter stood at ₹3,058 crore, up from ₹2,536 crore reported in the corresponding quarter a year ago.

For the fiscal 2017-18, the company’s net profit stood at ₹197 crore down from ₹221 crore on total income of ₹10,166 crore against ₹8,466 crore in the previous year.

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Published on May 10, 2018
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