Reliance Industries Limited (RIL) has acquired Maharashtra's largest industrial land parcel, spanning over 5,286 acres near Navi Mumbai Airport, JNPT, and the Mumbai Trans Harbour Link (MTHL) project, for Rs 22 billion. The land, once part of the Navi Mumbai SEZ, holds immense economic potential, projected to exceed Rs 1 trillion following the operationalisation of the MTHL and Navi Mumbai Airport.

The acquisition was facilitated through Urban Infrastructure Holdings Pvt Ltd (UIHPL), where Reliance holds a 33% stake, Jai Corp Ltd owns 32%, and SKIL Infrastructure controls 35%. UIHPL's subsidiary, Dronagiri Infrastructure Pvt Ltd (DIPL), sold its 74% stake in Navi Mumbai IIA Pvt Ltd (NMIIA) to RIL for Rs 16.28 billion, valuing the entire project at Rs 22 billion.

Despite its significant economic potential, the transaction has been described by rating agencies as undervalued, given the recent appreciation in land prices and the minimal remaining capital expenditure required for the project. The site, cleared by the Environment Ministry, is expected to see increased demand for plots in the region.

Reliance has been actively investing in the area through its subsidiary Reliance 4IR Realty Development Ltd., which has advanced approximately Rs 61.62 billion for development activities in Dronagiri, Kalamboli, and Ulwe. Part of this funding has been used to acquire optionally fully convertible debentures of special purpose vehicles (SPVs) managing developments in the region.

The Board of Urban Infrastructure has also proposed reducing its share capital by 99.76%, redistributing Rs 37.46 billion among shareholders, including Rs 14.92 billion in equity returns and redemption of debentures worth Rs 6.82 billion. Following the conversion of debentures, Reliance and Jai Corp Group are set to hold substantial equity stakes in UIHPL, thereby gaining significant control over NMIIA.

This acquisition aligns with Reliance’s strategic investments in industrial and infrastructural development, positioning it to capitalise on the region’s growing economic and logistical importance.

(freepressjournal)