Reliance Infra to raise stake in Reliance Naval via rights issue

Reliance Infrastructure defence arm Reliance Naval and Engineering will soon announce a rights issue for shares to increase the shareholding of the parent, Chairman Anil Ambani told shareholders at the Annual General Meet of the company.

The Reliance Group’s flagship infrastructure company has decided to focus on defence and engineering, procurement and construction business. It plans bids for six submarines worth Rs 50,000 crore, Ambani said.

“Our focus is on defence sector. Yes, there is competition in defence sector. Yes, government is the customer. But we are completely committed to succeed in the defence sector,” Ambani said.

He told shareholders that with the acquisition of Pipavav Defence & Offshore Engineering and the subsequent tie ups with international companies makes Reliance Infrastructure one of the two companies in India which are strategically positioned to participate in the government’s programme to build submarines.

“With regard to Reliance Naval, the mandatory requirement for change of ownership is what we’ve achieved with our 31% shareholding. We have the ability to increase our shareholding to 36%. We will be shortly announcing a rights issue and through the rights issue, we will have the ability to increase our shareholding,” Ambani said.

He also said that Reliance Infrastructure is engaging with Japanese companies with the intention of participating in India’s ambitious Rs 1 lakh crore-bullet train project.

“We are deeply engaged and involved with a number of Japanese companies through joint ventures and we will participate in this very ambitious Rs 1 lakh crore Bullet Train project,” Ambani said.

In its EPC business, the company is shortlisted as bidder for Bandra-Versova Sea Link, Coastal Road project, we also has letter of intent for metro orders, Ambani said.