Reliance Energy (REL), a part of the Anil Ambani group, will be spin off its infrastructure projects into a separate company. The move is aimed at unlocking the shareholders'' value, the company said in a press statement, indicating that the newly formed infrastructure company is likely to list on the bourses.
The REL board on October 30 cleared the setting up of the separate subsidiary, consisting infrastructure projects worth Rs 30,000 crore. Industry analysts said the move was in line with REL''s plan to emerge as a pure-play power distribution company. Earlier, it had spun off some its power generation projects into Reliance Power, which is in the process of launching a mega public issue. The new company will be a wholly owned subsidiary of REL and execute such projects as the four-laning of five National Highway projects in Tamil Nadu covering a length of 400 km, the 20-km Western Freeway Sealink Project in Mumbai, the Rs 6,000 crore project for the construction of a 12-lane, 150-km highway around Jaipur and the first ever metro rail project in Mumbai.
A consortium led by REL has emerged as the preferred bidder for the development of a new business district spread over 77 acres in Hyderabad, which includes construction of a 100-storey trade tower (likely to be the tallest in South East Asia) at an investment of Rs 6,500 crore. The public issue of Reliance Power is believed to be on tracks. The company''s prospectus has been awaiting the market regulator Sebi''s approval. It is expected that the issue will hit the market towards the end of November to raise around Rs 8,000 crore.
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