At a value of INR 2,200 crore, Reliance Industries Ltd (RIL) purchased the largest industrial land block in Maharashtra, which spans more than 5,286 acres and is strategically located near the Navi Mumbai Airport, JNPT, and the Mumbai Trans Harbour Link (MTHL) project.
The stock market was notified by Anand Jain's Jai Corp Ltd that Urban Infrastructure Holdings Pvt Ltd (UIHPL), a business in which his company owns 32%, is calling an extraordinary general meeting (EGM) of shareholders to approve a capital reduction proposal from the company.
In order to value the company at INR 2,200 crore, the company told the stock exchange that Dronagiri Infrastructure Pvt Ltd (DIPL), a subsidiary of UIHPL, has sold Reliance Industries Ltd. its 74% ownership in Navi Mumbai IIA Pvt Ltd (NMIIA) for INR 1,628.03 crore.
The Navi Mumbai Special Economic Zone (SEZ) has an economic potential of more than INR 1 lakh crore once the MTHL and Navi Mumbai Airport are operational.
RIL stated, none of the company's promoters, the promoter group, or group companies have any stake in the aforementioned transaction, and the investment is not a related party transaction.
According to its annual report for the fiscal year ending March 2023, UIHPL is owned 33% by Reliance Group firms managed by Mukesh Ambani, 32% by Jai Corp Group, which is run by Anand Jain, and 35% by SKIL Infrastructure, according to credit rating agency Care Ratings.
UIHPL owned 74% of NMIIA and 99% of Dronagiri Infrastructure. CIDCO owns the remaining share.
Navi Mumbai IIA has reached financial close for 2,140 hectares (about 5286 acres) and is presently building the land, according to the SKIL Infrastructure website. According to the report, the corporation is the primary consortium member for Navi Mumbai IIA Ltd., while Reliance Group Investment and Holding Private Ltd., a business owned by the Mukesh Dhirubhai Ambani Group, holds the remaining stake.
On January 2, Dronagiri Infrastructure planned to call a shareholder meeting to request consent to reduce its share capital.
The Board of Urban Infrastructure, which owns Dronagiri, has proposed to reduce 99.76 percent of its share capital. This also consists of equity shares and fully convertible preference shares, or CCPS, proportionately. It also plans to pay its shareholders a total of INR 3,746.87 crore in consideration for this capital reduction, taking into account CCPS on an as-converted basis.
The promoter's equity investment of INR 1,597 crore has already been given to the shareholders of Urban Infrastructure. Dronagiri will redeem Optionally Fully Convertible Debentures held by its subsidiary Vinamra Universal Traders Private Limited for INR 682 crore and distribute INR 1,492.50 crore plus any interest that has accumulated.
UIHPL will receive at least INR 3,772 crore in total funding. Additionally, Reliance (Mukesh Ambani) Group received Compulsorily Convertible Debentures from UIHPL, which owned a 99 percent share in DIPL. According to the rating agency, Reliance and Jai Corp Group will own a sizeable ownership position in UIHPL following the conversion of CCDs. Reliance Group and Jai Corp Group would have indirectly controlled NMIIA as a result of this.
According to Care Ratings, NMSEZ received deposits totalling INR 6,038 and equity capital and share application funds of about INR 3,100 crore up until December 31, 2022. Since then, the current state of these deposits is unclear.
Reliance gave its subsidiary Reliance 4IR Realty Development Ltd. nearly INR 6,162 crore, according to the 2023-24 balance sheet. The company used some of the loans it had given and made a sizable investment in the Zero Coupon Unsecured Optionally Fully Convertible Debentures of multiple SPVs engaged in development in the Dronagiri, Kalamboli, and Ulwe regions.
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