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Meta Takes 30% Stake in Reliance's REIL in Major Restructuring Deal

Reliance Industries Limited has announced a restructuring of its subsidiary Reliance Enterprise Intelligence Limited (REIL). The company allotted new shares, with a majority stake going to another Reliance subsidiary and a 30% stake being acquired by Meta Platforms Inc. This transaction changes REIL's status from a step-down wholly owned subsidiary to a step-down subsidiary of Reliance. The company confirmed all necessary approvals are in place and specified the nature of the related party transactions.

Key Points: Meta Buys 30% Stake in Reliance's REIL Unit

  • Meta's subsidiary invests Rs 256.6 crore
  • REIL allots shares to Reliance & Meta units
  • Reliance retains 70% controlling stake
  • Transaction approved and on arm's length basis
2 min read

Reliance Industries announces REIL stake restructuring, Meta picks 30% stake

Reliance Industries restructures REIL, with Meta's subsidiary acquiring a 30% stake for Rs 256.6 crore, changing its subsidiary status.

"REIL has ceased to be a step-down wholly owned subsidiary and has become a step-down subsidiary of the company. - Reliance Industries Disclosure"

New Delhi, February 25

Reliance Industries Limited informed the stock exchanges that Reliance Enterprise Intelligence Limited has ceased to be a step-down wholly owned subsidiary of the company following a fresh equity allotment.

In a disclosure submitted to the exchanges under SEBI's Regulation 30 (Listing Obligations and Disclosure Requirements) Regulations, 2015, Reliance Industries Limited stated that REIL allotted 85,31,75,000 equity shares of face value Rs 10 each at par.

Of the total allotment, 59,66,22,500 equity shares aggregating Rs 596.6 crore were allotted to Reliance Intelligence Limited, a wholly owned subsidiary of Reliance Industries Limited, while 25,65,52,500 equity shares aggregating Rs 256.6 crore were allotted to Facebook Overseas Inc, a wholly owned subsidiary of Meta Platforms Inc.

Post allotment, Reliance Intelligence Limited holds 70 per cent of the total equity capital of REIL, and the remaining 30 per cent is held by Facebook Overseas Inc. Consequently, REIL has ceased to be a step-down wholly owned subsidiary and has become a step-down subsidiary of the company.

The company noted that all necessary approvals for the investment have been obtained. It clarified that the transaction between REIL and Facebook Overseas Inc is not a related party transaction, while the transaction between REIL and Reliance Intelligence Limited is a related party transaction conducted on an arm's length basis.

Reliance Industries Limited further stated that none of the company's promoter, promoter group, or group companies have any interest in the transaction.

- ANI

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Reader Comments

S
Sarah B
Interesting to see the corporate structuring. They've made sure it's not a related party transaction with Meta, which is crucial for transparency. The arm's length basis with their own subsidiary is also a good governance practice.
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Priya S
Another big-ticket deal! But I hope this 'enterprise intelligence' focus translates into real benefits for small businesses and startups, not just the giants. We need tech that empowers the local kirana store too.
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Vikram M
Rs 256.6 crore from Meta is a significant vote of confidence. This partnership can accelerate AI and data analytics solutions for Indian enterprises. The future is definitely digital, and Reliance is positioning itself right at the center.
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Rohit P
While the deal looks good on paper, I have a respectful criticism. There's a lot of corporate jargon here - 'step-down subsidiary', 'arm's length basis'. I wish business news was explained in simpler terms for common investors like us.
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Michael C
The key takeaway is Reliance retains 70% control. They're not diluting their vision, just bringing in a strategic partner with deep pockets and tech expertise. This is how you build for the long term.

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