Reliance Project and Property Management Services (RPPMSL), a subsidiary of Reliance Jio, has paid Rs 3,720 crore to complete the acquisition of Reliance Infratel, which was going through insolvency processes.
The existing paid-up equity share capital of Reliance Infratel has been cancelled, according to Reliance Industries in a stock exchange filing. Reliance Projects and Property Management Services retains 100% of the equity share capital of Reliance Infratel upon such cancellation.
“RITL has today allotted to RPPMSL ,50,00,000 equity shares of Rs. 10 each, for cash, aggregating Rs. 5 crore; and 372,00,00,000 Zero Coupon Optionally Fully Convertible Debentures of Rs. 10/- each, for cash, aggregating Rs. 3,720 crore,” the filing said.
Reliance Projects and Property Management Services, a fully owned subsidiary of Reliance Industries, submitted the resolution plan for the acquisition of Reliance Infratel under Section 31 of the Insolvency and Bankruptcy Code 2016 on December 4, 2022.
In a stock exchange filing the following day, Reliance Industries stated that the National Company Law Tribunal, Mumbai Bench, had approved the resolution plan in its order dated December 3, 2020.
Reliance Infratel, a division of Anil Ambani’s Reliance Communications, was established in India on April 16, 2001.
According to the stock filing, Reliance Infratel’s revenue for the fiscal years 2022, 2021, and 2020 was 1,186, 1,208, and 1,322 billion rupees, respectively.
Reliance Infratel is one of the major private telecom infrastructure providers in the country and the acquisition “is synergetic with the telecommunications operations of Reliance Jio Infocomm”.
According to a stock exchange filing by Reliance Industries, the NCLT and Competition Commission of India have given their clearances, thus no other governmental or regulatory approvals are necessary.