Reliance Industries Ltd. (RIL) released a statement on Monday declaring its investment in the newly incorporated subsidiary, Reliance New Energy Solar Ltd. (RNESL). The regulatory filing disclosed a total investment of Rs. 1 lakh cash in 10,000 shares of RNESL, worth Rs. 10 each.
This subsidiary is wholly-owned and hasn’t started business operations yet. RIL clarified that this investment is not included in related party transactions. It added that the promoter or promoter group companies have no interest in this subsidiary.
Reliance Industries Ltd. is India’s leading private sector corporation, dealing in diverse business operations. The most notable ones among them are petrochemicals, hydrocarbon production and exploration, petroleum marketing and refining, retail, textiles mass media, and other digital services.
Here are some data regarding the company’s financials.
As of Tuesday (13 July 2021), the closing price of RIL shares stood at Rs. 2099.55 on the BSE. This value noted a 0.72% rise.
The image above denotes RIL share trends on 14 July 2021 as of the time of writing.
Reliance Industries formed the RNSESL subsidiary with the sole purpose of solar energy operation. RIL’s Chairman and Managing Director Mukesh D. Ambani commented on the investment that the company is all set to switch to a business with sustainable and zero-carbon materials.
He added that RIL aims to achieve this goal by re-purposing its existing assets. This will ensure increasing returns over a longer-term.
The company will undertake several initiatives to bring this entire plan into action. Here are some of the key takeaways.
The company plans on setting up decentralised and rooftop solar installations in villages for the functioning of these factories.
Besides setting up these factories mentioned above, RIL also plans to establish 2 separate divisions. This includes a Renewable Energy Project Management and Construction Division to offer solutions globally to large-scale renewable plants.
The other one is a Renewable Energy Project Finance Division to provide stakeholders access to financial solutions.
Besides the Rs. 1 lakh investment in RNESL shares, RIL will also invest Rs. 75,000 crores in building the Dhirubhai Ambani Green Energy Giga Complex. Ambani had previously declared that the investment would span the next 3 years to result in an ecosystem fully integrated with renewable energy. With this step forward towards a new initiative, RIL is expected to achieve another remarkable innovation.
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As of 14 July 2021, Reliance Industries Ltd. shares have a market capitalisation of over Rs. 13 lakh crores.
RIL has its headquarters in Mumbai.
Ambani made this announcement on 24 June 2021 at the Reliance Industries’ AGM.
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