Reliance Infrastructure sells stake in IEX for Rs103 crore

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New Delhi: Reliance Infrastructure Ltd (R-Infra) has sold its 4.122% stake in power trading exchange IEX to a non-resident investor for a consideration of Rs103 crore. R-Infra has sold its stake in IEX to a non-resident investor for a consideration of Rs103 crore, valuing IEX at Rs2,500 crore—highest value thus far, sources close to the development said.

R-Infra is amongst primary investors in IEX and owns 4.122% stake in IEX, sources said. R-Infra had invested Rs1.25 crore for the stake in October 2007, sources added. IEX is a leading power trading exchange in India enjoying 30% of the short term power market—approximately nine per cent of total power market.

“Last 3 deals for exchange of 14.12% stake happened in February/March 2016 at an equity value of Rs2,375 crore—JSPL selling 4.12% stake to Motilal, and Bessemer selling five per cent stake each to TVS Capital and Dalmia group,” a source said.

R-Infra is one of the largest infrastructure companies, developing projects through various Special Purpose Vehicles (SPVs) in several sectors such as power, roads and metro rail in the infrastructure space and the defence sector. It is also a leading utility company having presence across the value chain of power businesses i.e. generation, transmission, distribution and power trading.

R-Infra through its SPVs has executed a portfolio of infrastructure projects such as a metro rail project in Mumbai on build, own, operate and transfer (BOOT) basis and eleven road projects with total length of 1,000km on build, operate and transfer (BOT) basis.

Moreover, it also provides engineering, procurement and construction (EPC) services for developing power and road projects.