Three bids for Anil Ambani’s Delhi power distribution business.

Italy’s biggest utility Enel Group is competing with homegrown private power producer-distributors Greenko and Torrent Power to acquire Reliance Infrastructure Delhi electricity distribution business, said people aware of the matter. The Anil Ambani-led Reliance Group is looking to sell assets to pay off lenders. The unit is India’s largest in terms of consumers.

Reliance Infrastructure had hired KPMG to find buyers for the 51% stake each it holds in BSES Rajdhani Power (BRPL) and BSES Yamuna Power (BYPL). The Delhi government owns the remaining 49% in both. The three submitted bids last Friday to comply with the deadline, said people directly involved in the matter.

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The asset was shown to several private equity funds including Brookfield, CDPQ and I-Squared Capital, but only three submitted bids, they said. The diligence exercise will begin after the shortlist is drawn up, expected in the coming week.

Reliance Group is expecting an enterprise valuation of Rs. 5,000 crore, inclusive of debt, said sources.

Reliance Group did not respond to queries. Enel and Greenko spokespersons declined to comment.

There was no response to emails sent on Saturday to Torrent Power.

ET