Anil Ambani's Rs 8932 crore company makes BIG move to improve efficiency, cost savings, announces...

Reliance Infra merger: Anil Ambani, chairman of Reliance Group, has been working religiously to revive his business empire. The former billionaire's Reliance Group has launched several projects and subsidiaries to lead the business world again. Now, Reliance Infra, a Rs 8932 crore market cap company, has announced a merger of its subsidiary with itself. The Ambani-led firm said that its board of directors has approved the Scheme of Arrangement between the company and its wholly owned subsidiary - Reliance Velocity Limited (RVL) - and their respective shareholders, ET reported. This would lead to the merger of Reliance Velocity with Reliance Infra. 

“The proposed Scheme is subject to necessary statutory compliances and requisite regulatory approvals, including approval of the Hon’ble National Company Law Tribunal, Mumbai Bench,” Reliance Infrastructure said in an exchange filing. Reliance Infra, a BSE SmallCap listed firm, is an integrated power utilities company of the Reliance Group. It is involved in power generation, infrastructure, construction and defence.

Reliance Velocity

Reliance Velocity belongs to the automobiles and related activities’ industry, Ambani-led Reliance Infra said in an exchange filing. In December last year, Reliance Infra had informed that it has formed a new subsidiary which does not fall within the purview of Related Party Transaction. But now, it is merging the subsidiary with itself.

READ | Deepinder Goyal's Zomato gets key approval to rename Rs 191000 crore company, it is now called... 

Reliance Infra and Reliance Velocity merger

The merger is being done to rationalise and consolidate the group structure. “The scheme will also lead to improved operational efficiencies and cost savings, apart from providing various other matters incidental or otherwise integrally connected,” Reliance Infra stated.