Reliance Industries Ltd (RIL) recently completed a significant acquisition by purchasing a 74% equity stake in Navi Mumbai IIA Pvt Ltd (NMIIA), a company managing one of Maharashtra’s largest industrial land parcels. This acquisition, valued at Rs1,628.03 crore, marks a pivotal shift in the ownership structure of NMIIA, which was previously a subsidiary of Dronagiri Infrastructure Pvt Ltd (DIPL), a company owned predominantly by Urban Infrastructure Holdings Pvt Ltd (UIHPL).
On 13 December 2024, RIL acquired 57.12 crore shares of NMIIA at Rs28.50 per share, valuing the entire company at Rs2,200 crore. This acquisition was executed following CIDCO’s waiver of its right of first refusal, enabling RIL to secure direct control over NMIIA. The industrial zone spans over 5,286 acres and is strategically located near the Navi Mumbai International Airport, Jawaharlal Nehru Port, and the Mumbai Trans Harbour Link.
RIL stated that this investment is not a related-party transaction, emphasising that neither its promoters nor its group companies had prior involvement in NMIIA. Following the acquisition, NMIIA is now a subsidiary of Reliance Industries.
Before the transaction, UIHPL, the parent company of DIPL, had a diverse ownership:
• Reliance group companies held a 33% stake.
• Jai Corp group, led by Anand Jain, owned 32%.
• SKIL Infrastructure, which is currently undergoing insolvency proceedings, held 35%.
UIHPL owned 99% of DIPL which, in turn, held a 74% stake in NMIIA. The remaining 26% of NMIIA was owned by the City and Industrial Development Corporation of Maharashtra Ltd (CIDCO), a government agency.
The sale generated Rs1,628.03 crore for DIPL which plans to distribute these funds to UIHPL as part of a capital reduction initiative. In turn, UIHPL intends to distribute a minimum of Rs1,492.50 crore among its shareholders, subject to regulatory and shareholder approvals. Jai Corp, owning a 32% stake in UIHPL, expects to receive about Rs364 crore from this distribution.
NMIIA’s transition from a special economic zone (SEZ) to an integrated industrial area (IIA) in 2018 positioned it as a key player in Maharashtra’s industrial development. The Maharashtra government appointed NMIIA as the special planning authority for the Dronagiri, Kalamboli, and Ulwe nodes under the Maharashtra Regional and Town Planning Act, 1966. This strategic role, coupled with the proximity to major infrastructure projects, underscores the asset’s value.
According to an article by
NDTVprofit.com - a report by Care Ratings, NMIIA has seen a significant appreciation in land value, with no major capital expenditures remaining for the project. The demand for industrial plots is expected to rise, particularly with the completion of critical infrastructure like the Mumbai Trans Harbour Link and Navi Mumbai International Airport.
The valuation of Rs2,200 crore for a 5,286-acre land parcel (asset of NMIIA) has drawn scrutiny, with media reports describing the sale price as conservative given the strategic location and potential economic value. This acquisition enhances RIL’s portfolio, aligning with its broader strategy to invest in infrastructure and industrial development.
For UIHPL and its shareholders, the transaction facilitates a significant capital infusion, enabling them to restructure and realign their financial priorities. The move also reinforces NMIIA’s role as a cornerstone for Maharashtra’s industrial growth, particularly in light of upcoming mega projects in the region. By consolidating ownership in NMIIA, RIL has positioned itself at the forefront of Maharashtra’s industrial transformation, leveraging the potential of one of the state’s largest industrial hubs.