Big move by Anil Ambani as Reliance Infra announces merger of…, says it will lead to…

The Anil Ambani-led company said its board of directors has approved the Scheme of Arrangement between the company and Reliance Velocity Limited and their respective shareholders, which would lead to a merger of its wholly owned subsidiary with Reliance Infra.

Reliance Infrastructure, the integrated power utilities arm of the Anil Ambani-led Reliance Group, Saturday, announced the merger of its subsidiary, Reliance Velocity Limited (RVL), with itself. In a regulatory exchange filing, the Anil Ambani-led company said its board of directors has approved the Scheme of Arrangement between the company and Reliance Velocity Limited and their respective shareholders, which would lead to a merger of its wholly owned subsidiary 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,” read the exchange filing by Reliance Infra.

Reliance Infra merger

In December last year, Reliance Infra had announced that the Anil Ambani-led company had carved out a new subsidiary that does not fall within the purview of Related Party Transaction as Reliance Velocity belongs to the automobiles and related activities’ industry, according to the company’s exchange filing.

Reliance Infra said the merge is part of its drive to rationalise and consolidate the structure of the Reliance Group, and will lead to improved efficiency and cost savings. “The scheme will also lead to improved operational efficiencies and cost savings, apart from providing various other matters incidental or otherwise integrally connected,” it said.

Reliance Infrastructure, a key of arm of Anil Ambani’s Reliance Group, provides Engineering and Construction services for power, roads, metro rail and other infrastructure sectors. The company, through its special purpose vehicles, is involved in the implementation, operation and maintenance of several projects in defence sector and infrastructural areas.

Reliance Group share price

Meanwhile, Reliance Group share prices continued their steady upward rise, closing at Rs 239.45 apiece on BSE on Friday, up 1.61 percent. The company’s stock prices have surged nearly 13 percent in the last week, and 12.37 percent in the last 6 months, as per market data.

Reliance Infra shares have delivered a 1300% return in the last five years.