Reliance Industries (RIL) share price gained in the early trade on March 1 after Reliance Strategic Business Ventures (RSBVL), a wholly-owned subsidiary of RIL, said it has acquired additional equity stake in investee company skyTran Inc.
The additional equity stake was acquired by RSBVL for a consideration of $26.76 million, increasing its shareholding to 54.46 percent on a fully diluted basis, said the statement.
SkyTran, a technology company incorporated under the laws of Delaware, US, in 2011, has "developed breakthrough passive magnetic levitation and propulsion technology for implementing personal transportation systems aimed at solving the problem of traffic congestion globally", the statement said.
RIL Chairman Mukesh Ambani said the acquisition of majority equity stake in skyTran reflects his conglomerate's commitment to invest in "building futuristic technologies that would transform the world".
"We are excited by skyTran’s potential to achieve an order of magnitude impact on highspeed intra and inter-city connectivity and its ability to provide a high speed, highly efficient and economical ‘Transportation-As-A-Service’ platform for India and the Rest of the World," he added.
"We firmly believe that non-polluting high speed personal rapid transportation system will help facilitate environmental sustainability through efficient use of alternative energy and make an impactful reduction in air and noise pollution," Ambani further said.
For the deal with skyTran, the law firms Covington & Burling LLP and Freshfields Bruckhaus Deringer US LLP acted as legal counsel and IP counsel, respectively, to Reliance Industries, the company noted.
At 09:25 hrs Reliance Industries was quoting at Rs 2,101.05, up Rs 15.25, or 0.73 percent on the BSE.
The share touched its 52-week high Rs 2,368.80 and 52-week low Rs 867.45 on 16 September, 2020 and 23 March, 2020, respectively.
Currently, it is trading 11.3 percent below its 52-week high and 142.21 percent above its 52-week low.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd that publishes Moneycontrol.com