Reliance Infrastructure is looking to divest its stake and is in talks with investors and funds to sell stake in its roads, metro lines, and transmission businesses. The company which started out as a power distributor in India's financial capital, has looked to transform itself into a complete infrastructure player as Asia's third-largest economy revamps its infrastructure.
The current portfolio of projects includes eleven road projects, three metro rail lines in Mumbai and Delhi, and five transmission line projects. The company sees a lot of interest from foreign funds, foreign strategic partners, private equity firms and by parties who want to have a share in its roads, metro and transmission businesses.
To plug huge infrastructure gaps that put the brakes on faster economic growth, India has pushed privatization in this space. The government aims to invest $1 trillion in the sector between 2012 and 2017, half of which will come from private money.
The company’s profit after tax dipped 6% to Rs 1080.91 crore for the year ended March 31, 2011 as compared to Rs 1151.69 crore for the year ended March 31, 2010. Its total income has decreased from Rs 10817.09 crore for the year ended March 31, 2010 to Rs 10127.78 crore for the year ended March 31, 2011.
Reliance Infrastructure businesses ranges from executing engineering, procurement and construction (EPC), contracts to building and operating roads and Metro railway.
| Company Name | CMP |
|---|---|
| NTPC | 396.10 |
| Tata Power | 435.70 |
| Adani Power | 203.05 |
| Power Grid Corp | 319.30 |
| Torrent Power | 1622.05 |
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