Relinfra clears dues, to turn debt-free in 2019
ADAG group’s infra arm, Reliance Infrastructure (Relinfra) announced the payment of all outstanding electricity duty and other taxes amounting to Rs. 2,640 crore payable to the Maharashtra government. The same was paid from the money realised out of the sale of integrated Mumbai power distribution business during the last week to Adani Transmission.
With this, the company has successfully paid-off its debt liabilities amounting to Rs. 13,800 crore from the completion of its Rs. 18,800 crore deal on August 29, posting the largest ever debt repayment within the power sector, so far.
The company's management expects the company to go debt-free in 2019 with the regulatory assets under approval worth Rs. 5,000 crore. Thereby the company can concentrate on its asset-light and high growth strategy to achieve top-end ratings and attract back investors.
The stock of Reliance Infra retreated in the second half of Monday’s session after rallying for 5 consecutive trading days and a half-day today, breaching previous day’s high. During the rally, the stock duly broke out of its 100 and 200 day EMA levels. The stock had witnessed a downward sloping trendline breakout at 419 levels on August 29 with volume spurt and 14-period RSI crossing 60 suggesting momentum.