Reliance increases stake in US-based tech company SkyTran to 26.3%

Reliance Strategic Business Ventures Ltd (RSBVL), a wholly-owned subsidiary of Mukesh Ambani-led Reliance Industries, has increased its stake in US-based SkyTran Inc, a venture-funded technology company developing modern transport modes including personal rapid transit system.
RSBVL had acquired convertible notes in two tranches, the first one on November 29 last year and the second one on March 23 this year which got converted into shares of SkyTran Inc on April 27 upon certain conditions being satisfied.
"Consequent upon this, the shareholding of RSBVL in SkyTran Inc stood increased to 26.31 per cent on a fully diluted basis," Reliance Industries said in regulatory filings at stock exchanges.
No regulatory approvals were required in India for the acquisition of shares, it added.
SkyTran, which has partnered with National Aeronautics and Space Administration (NASA) in the United States and Israel Aerospace Industries (IAI) in Israel, has developed magnetic levitation technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally.

Reliance has reportedly invested in SkyTran to play an active role in advancing solutions, especially in telecom, digital platforms and services, advanced materials and electric batteries.

Nita Ambani named to the board of New York-based Metropolitan Museum of Art

International News
Nita Ambani, philanthropist and wife of Asia’s richest person, was named to the board of the largest U.S. art museum after years of supporting exhibitions at the New York City institution.
Ambani’s backing “has had an enormous impact on the museum’s ability to study and display art from every corner of the world,” Daniel Brodsky, the Metropolitan Museum of Art’s chairman, said Tuesday in a statement.
The wife of Mukesh Ambani, chairman of refining-to-telecom giant Reliance Industries Ltd, has been promoting Indian art and culture around the world along with sports and development programs inside the country as the head of the conglomerate’s foundation. Nita Ambani, 57, was elected to become an honorary trustee of the museum, according to the statement.
The 149-year-old Metropolitan museum draws billionaires, celebrities and millions of visitors a year to see art spanning 5,000 years from around the world. The not-for-profit institution reported revenue, support and transfers of $384.7 million in 2018 at the operating level, down from $385.3 million the previous year, according to its annual report.
“The Met enables Indian art to be shown at an iconic institution and further encourages us to continue our work in the art world,” Nita Ambani said in a 2017 statement from the museum.
Bloomberg Philanthropies, which along with Bloomberg LP is owned by Michael Bloomberg, helps fund the Metropolitan Museum of Art.

Mukesh Ambani, the world’s 14th-richest person and Asia’s wealthiest, had a net worth of about $55 billion, according to the Bloomberg Billionaires Index.....READ MORE

Aramco to buy 20% in RIL chemical biz for $15 bn; GigaFiber launch on Sep 5

Company News

Reliance Industries Ltd is set to sell a 20 per cent stake in its oil to chemicals business to Saudi Aramco in one of the largest foreign investments in the country, Reliance Chairman Mukesh Ambani said on Monday. Ambani also announced the commercial launch of Jio Fiber on September 5, with the base plan starting at a speed of 100 MBPS and going up to 1 GBPS with prices ranging from Rs 700 to 10,000 per month.
Aramco to take 20% in Reliance's refinery, chemical biz
Ambani on Monday announced that Saudi oil giant Aramco has agreed to take a 20 per cent stake in his flagship Reliance Industries' oil refinery and chemical business at an enterprise value of $75 billion (around Rs 5,32,466 crore).Making the announcement at Reliance Industries' 42th annual general meeting, he said this would be the biggest foreign investment in the history of the company.
As part of the deal, Saudi Aramco will supply 500,000 barrels per day or 25 million tonnes per annum, of crude oil to Reliance's twin refineries at Jamnagar in Gujarat.Saudi Aramco will take 20 per cent stake in a proposed special purpose vehicle (SPV) housing the twin refineries of Reliance as well as the firm's petrochemical complex.
Reliance operates two refineries in Jamnagar, Gujarat, with a total capacity of 68.2 million tonnes per annum.It plans to expand its only-for-exports special economic zone (SEZ) refining capacity to just over 41 million tonne from current 35.2 million tonne but does not have any plans to set up a new refinery in the country.
It is currently focused on expanding petrochemical and telecom business.

Jio pan-India broadband service launch from Sept 5...Read More

Relaxed FPI norms in InvITs to help Reliance, Tata Power cut debt

International News

The infrastructure InvITs to be launched by Reliance Industries, Tata Power and Vodafone Idea will be able to attract investments from foreign portfolio investor (FPIs), with the Union Budget relaxing norms to enable FPIs to subscribe to listed debt securities issued by the InvITs and REITs.
While Sebi had operationalised issue of debt securities under the InvIT and REIT regulations, raising financing from FPIs had hit a roadblock due to restrictions under the FPI regulations as only corporate debentures were permitted.
"As Invits and REITs are organised as trusts, it is now proposed to align the FPI regulations and permit FPIs to subscribe to debt securities issued by Invit and REITs," said Shagoofa Rashid Khan, Partner, Cyril Amarchand Mangaldas.
Reliance Jio Infocomm, a subsidiary of Reliance Industries, plans to hive off its telecom and fibre assets to two separate InvITs. With this, Reliance will be able to park debt worth $15.4 billion with the InvIT which is seeking investments from both foreign and local investors.
Taking a leaf from RIL's books, Tata Power also plans to deleverage its balance sheet by hiving off its renewable energy portfolio and park debt worth Rs 10,000 crore with the InvIT. Tata Power had gross debt of Rs 48,500 crore as on March 2019. Vodafone Idea, owned by Vodafone and Aditya Birla group, is also planning an InvIT to hive off part of its Rs 1.2 trillion debt.
The move will also help Embassy Office Park REIT, which was listed recently on the Indian stock exchanges.

 As of now, foreign investments via the FPI route are too restrictive and despite interest shown by overseas participants to invest in the InvITs of top-rated companies's , they were not allowed...Read More