Reliance Industries gains 1% on acquisition of 3 software solutions firms

Reliance Industries shares gained nearly a percent in morning trade on February 25 after the oil-retail-to-telecom major through its subsidiary RIIHL acquired three software solutions companies.

The stock was quoting at Rs 1,236.05, up Rs 3.45, or 0.28 percent on the BSE, at 1031 hours IST.

Reliance Industries, on February 22, said its subsidiary Reliance Industrial Investments and Holdings Limited (RIIHL) entered into an agreement for acquisition of equity shares of software service and data solutions company Surajya Services Private Limited (Easygov) for up to Rs 18 crore.

RIIHL will further invest an amount up to Rs 50 crore.

The said investment upon completion will translate into 76 percent equity stake in Easygov on a fully diluted basis, it said, adding the total investment is likely to be completed by March 2021.

RIIHL also entered into an agreement for acquisition of equity shares of software simulation services company SankhyaSutra Labs Private Limited (SSL) for up to Rs 16.02 crore.

It will further invest an amount of up to Rs 200 crore and is likely to be completed the acquisition by December 2021. The said investment will translate into around 83 percent of equity capital in SSL on a fully diluted basis.

"The aforesaid investment will further enable the group’s digital initiatives that include enterprise-grade high end computing analytical tools and solutions," RIL said.

Reliance Industries' subsidiary also made acquisition of equity shares of Reverie Language Technologies Private Limited (Reverie) for up to Rs 190 crore.

RIIHL will further invest an amount up to Rs 77 crore. "The said investment upon completion will translate into 83.30 percent equity capital in Reverie on a fully diluted basis," Reliance said.

Reverie with a turnover of Rs 7.6 crore in FY18 is engaged in the business of developing end-to-end voice technology stack for delivering a complete multilingual user experience. It would work in collaboration with Reliance ecosystem for integrating its services in the various existing digital consumer platforms of the group.