RInfra plans rights issue for Reliance Naval & Engineering

Anil Ambani today said Reliance Infrastructure is in talks with some Japanese firms to participate in the Rs 1-trillion worth of defence projects on the anvil and is also planning a rights issue for Reliance Naval & Engineering.
"We are deeply engaged and involved with a number of Japanese companies through joint ventures and we will participate in this ambitious Rs 1 trillion crore worth of defence projects," Ambani, the chairman of the Reliance Group said while addressing the shareholders at the AGM of RInfra.
He also said the group's defence vertical Reliance Naval & Engineering will soon come out with a rights issue which will help the promoters to increase stake in the company to 36 per cent.

Noting that the group is focusing on the defence sector even though there is a lot of competition, he said "government is shortly going to award contract for six submarines worth Rs 50,000 crore. With the acquisition of Pipavav, we are one of the only two companies strategically positioned to participate in this programme in the country."
Regarding the mandatory requirement for change of ownership in case of Reliance Naval and Engineering, he said the company has achieved its 31 per cent share-holding.
"We've the ability to increase our shareholding to 36 per cent, which we will be able to do through this rights issue," Ambani said.

He further said the company has a joint venture with the leading material and aerostructure composite company in France-based Daher which supplies 50 per cent of composite material to Boeing and Airbus.

"They will be moving all their facilities to India and India will be an exporter to Boeing and Airbus of very sensitive composite parts and materials," he said without elaborating.
On the opportunities on its EPC business, he said the company has been short-listed as bidder for Bandra-Versova Sea Link, the coastal road project in the city, and we also have LoIs for metro orders. Besides, it has also been qualified for the Mumbai-Nagpur Expressway project.

Ambani further said RInfra is looking at rooftop solar power installations on Mumbai MetroOne and customers in the megapolis.
"Commercially viable solutions have to be found, which do not impact quality of our service to our consumers," he added.