Reliance Industries Seals Rs. 1,628 Crore Deal for 74% Stake in NMIIA; RIL Stocks In Focus

In an exchange filing on Friday, December 13, 2024, Mukesh Ambani-headed Reliance Industries announced its acquisition of a 74% equity stake in Navi Mumbai IIA Private Ltd. (NMIIA) for Rs. 1,628.03 crore. The transaction, which was approved by the company's board of directors during their meeting on December 11, 2024, was finalized after receiving consent from the City and Industrial Development Corporation of Maharashtra Limited (CIDCO). CIDCO waived its rights of first refusal, and the consent was received at 8:30 PM on December 12, 2024, the release further noted.

With this major step, NMIIA becomes a subsidiary of Reliance Industries, further strengthening RIL's presence in Maharashtra's industrial development region.

Details of the Acquisition

The deal, which was completed on December 13, 2024, involved the purchase of 57,12,39,588 equity shares of NMIIA at Rs.28.50 per share. CIDCO (City and Industrial Development Corporation of Maharashtra Limited) retains a 26% equity stake in the company as per the filing.

This acquisition will help Reliance Industries to expand its footprint in Maharashtra's industrial and infrastructural development. Experts believe that this partnership will particularly boost economic growth, attract investments, and enhance industrial planning in Maharashtra. RIL has been continuously diversifying its portfolio lately with major strategic investments in India's industrial and infrastructural sectors.

Reliance Stocks In Focus: Stock Market Reacts

Following the announcement, Reliance Industries stock showed positive momentum. Shares closed at Rs. 1,274.45 on the BSE, extending gains of Rs. 11.55, or 0.91%, compared to the previous session. Despite this rise, Reliance shares have faced some challenges this week, trading in the red zone with an overall decline of 2.79%. Looking at the broader performance, the stock has shown a more mixed result over the past 30 days, with a minor 0.54% gain in the face of market fluctuations.

About NMIIA

Established on June 15, 2004, Navi Mumbai IIA Private Ltd. (NMIIA) is dedicated to developing an Integrated Industrial Area (IIA) in Maharashtra, aimed at driving economic growth and attracting industrial investments. Over the past three financial years, NMIIA has demonstrated consistent performance, reporting turnovers of Rs. 34.89 crore in FY 2023-24, Rs. 32.89 crore in FY 2022-23, and Rs. 34.74 crore in FY 2021-22.

To support its vision, the Government of Maharashtra has appointed NMIIA as a 'Special Planning Authority' under Section 40(1B) of the Maharashtra Regional and Town Planning Act, 1966. This designation empowers NMIIA to oversee strategic planning and infrastructure development and ensure the seamless execution of projects within the industrial area.