Reliance Naval to increase shareholding of Reliance Infra via rights issue

Company's focus to remain on defence sector, says chairman Anil Ambani

Reliance Infrastructure's defence arm Reliance Naval and Engineering will be announcing a rights issue to increase the shareholding of the parent firm, said Chairman Anil Ambani, while speaking to the company's shareholders at the annual general meet held in Mumbai on Tuesday.

"With regard to Reliance Naval, the mandatory requirement for change of ownership is what we have achieved with our 31 per cent shareholding. We have the ability to increase our shareholding to 36 per cent and we will be shortly announcing a rights issue which will help us increase our shareholding," Ambani explained.

Alongside, Reliance Naval (erstwhile Reliance Defence and Engineering) will bid for six submarines worth Rs 50,000 crore as it remains focused on defence and engineering, procurement and construction business.

"Our focus is on defence. Yes, there is competition in the defence sector. Yes, the government is the customer but we are completely committed to succeeding in the sector," Ambani said. Currently, 90 per cent of the country's defence requirements is met via imports.

Meanwhile, Reliance Infrastructure is also keen to participate in the country's bullet train project and is in talks with Japanese companies for the same.

"We are deeply engaged and involved with a number of Japanese companies through JVs and we will participate in the ambitious Rs 1 lakh crore bullet train project," informed Ambani.

Prime Minister Narendra Modi and Japanese counterpart Shinzo Abe had recently launched the bullet train project, which promises to cut travel time between Mumbai in Maharashtra and Ahmedabad in Gujarat.

Shares of Reliance Infrastructure on Tuesday ended 2 per cent up at Rs 474 per share on the BSE.