Reliance Infrastructure 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.
Reliance Infrastructure had signed a binding share purchase agreement with Cube Highways for its 100 per cent stake in Delhi-Agra toll road for Rs 3,600 crore.
“Reliance Infrastructure 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 per cent of proceeds only for debt reduction.
The firm said that with this transaction, its debt of will reduce by over 25 per cent 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 per cent lower at Rs 60.60 apiece on BSE.