New Delhi: Reliance Infrastructure (RInfra) Thursday said the sale of its entire stake in the Delhi-Agra Toll Roadway to Singapore-based Cube Highways will be completed by the end of August 2019. RInfra had signed a binding share purchase agreement with Cube Highways for its 100% stake in Delhi-Agra toll road for Rs 3,600 crore.
"RInfrastructure will receive enterprise value of Rs 3,600 crore including equity of up to Rs 1,700 crore," the company said in a regulatory filing, adding that it will utilise 100% of proceeds only for debt reduction. The firm said that with this transaction, its debt of will reduce by over 25% to less than Rs 5,000 crore.
Cube Highways and Infrastructure III Pte Ltd is a Singapore-based company formed by global infrastructure fund - I Squared Capital and a wholly-owned subsidiary of the Abu Dhabi Investment Authority. Last week, ratings agency India Ratings downgraded Reliance Infrastructure's long-term issuer rating to 'D - Issuer Not Cooperating'.
The downgrade came barely a week after the Anil Ambani-led company's auditors raised red flags over its financial results as well as "significant doubt" over the group's ability to continue as a going concern.
Reliance Infrastructure had reported a net loss of Rs 3,301 crore for the quarter ended March 31 on a consolidated basis. The company had recorded a profit of Rs 133.66 crore in the corresponding quarter of the previous financial year.
On an annual basis, it had incurred a loss of Rs 2,426.82 crore for 2018-19. It had reported a profit of Rs 1,255.50 crore in 2017-18. Shares of Reliance Infrastructure were trading 0.57% lower at Rs 60.60 apiece on BSE.
