Reliance Infrastructure has received its board’s approval for Scheme of Arrangement between Reliance Infrastructure and Reliance Electric Generation and Supply (REGSPL) and their respective shareholders and creditors subject to requisite approvals.
Under the scheme, Mumbai Power Generation, Transmission and Distribution Division, Goa Power Station Division and windmill Division of the Reliance Infra will be transferred to the REGSPL.
The demerger is aimed at increasing shareholders’ value by leveraging diversified investment opportunities; attribution of appropriate risk and valuation to different businesses based on their respective risk-return profile and cash flows; pooling of resources at the company level and allocation of capital to each of the businesses based on risk-return; and simplified and transparent businesses and achieving operational synergies.
