Rel Infra surges 3% as Greenko eyes Mumbai electricity biz

NEW DELHI: Shares of Reliance Infrastructure jumped nearly 3 per cent on Tuesday amid reports that Greenko is in talks with Anil Ambani-led Reliance Infrastructure to acquire its Mumbai electricity business for an enterprise value of Rs 10,000-13,000 crore ($1.75-2 billion).

In November 2015, the company entered into a non-binding pact to sell 49 per cent stake in the business to Public Sector Pension Investment Board (PSP Investments) of Canada, ET reported, adding that the exclusive negotiations lapsed, following which the company engaged with other potential suitors.

Following the report, the stock rose 2.98 per cent to close at Rs 497.70 on BSE.

The Mumbai business caters to 3 million customers, making it the country’s largest private sector integrated power utility, entailing 1800 mw of distribution along with generation facilities, besides over 1,000 km of underground network. The distribution franchise is nine decades old with the licence valid till August 2036, ET reported.